The Writers Guild of America has made their decision to go on strike. I fully support their decision to do so. Much of this has to do with the studios not caving in when it comes to DVD sales and revenue generated by new media.
The current residual rate is based off of VHS and DVD sales. Right now, 80 percent of sales go towards manufacturing and distribution. Of the remaining 20 percent, writers only get 1.2 percent or three cents for every $20 sold.
The WGA would like it to be 40% of the sale, rather than 20%.