Falling wages

Posted on April 7, 2008

I am earning less now than I did 6 years ago – how is this right?

The television industry has changed and is continuing to change. Previously there were only a small handful number of broadcasters and television was the only means to view programmes. Now there are around 600 channels and people can view programmes anytime, anywhere and on a device of their choice. This has resulted in a massively declining audience for ITV, BBC and Channel 4.

The BBC’s audience share has declined by 32% and ITV’s audience share has dropped by 44% in recent years. These falling viewing figures have resulted in lower advertising revenues and the BBC’s inability to justify a higher license fee. Of course this has had a major effect on the budgets available to make programmes and less money means a cap on the amounts of fees that can be offered to actors. Equity continues to ensure that the minimum fees are increased by RPI but it is those that work above the minimum that may see their fees staying the same or declining.

Because the minimum fees have been increased on a yearly basis and the lead performers take the lion share of the budget, there is a definite squeeze of those performers in the middle range. Equity has sought to address this but have been asked by agents via the PMA (Personal Managers Association) to not to seek to formally include the issue in negotiations. The agents believe it is their job to negotiate these fees above the minimum and wish to be left free to do this. We will be reviewing this whole issue over a period of time.

The challenge we face as a union is to take advantage of technological advances by ensuring that appropriate payments are being made for members’ work being used in these new ways. By securing the right to these additional payments it will help to compensate for the lowering of upfront fees and result in members being no worse overall. Please refer to FACTSHEET no. 5 – New Media Deals, which details the separate interim deals that Equity has already negotiated with broadcasters and producers for the use of members’ work on these new technologies.

TV is Changing • Equity