Writers would like to replicate the DGA formula, which is based on the number of subscribers to pay-TV services, resulting in substantial residuals. The international marketplace has become a good place to recoup. International growth has actually outpaced domestic growth in five of the past seven years, most visibly in the cable and satellite TV sectors. None of this is lost on either writers or actors. The current WGA formula for foreign residuals was established in 1970, when few countries broadcast U.S. TV programs.
Payments are then complete, ensuring a buyout for the most successful shows.
In 1970, many shows never made it to the third threshold. Today, that's often exceeded in just one small territory. Popular shows can air in more than 70 countries. However, producers caution that this market will shrink as foreign TV networks develop more of their own shows. Producers think it's too early to discuss Internet profits.