ENTERTAINMENT

WRITERS GUILD: DISNEY PLAN ON IPOD DOWNLOADS IS A ‘CALL TO ARMS’

The unions that represent professional screenwriters, the Writers Guild of America and the Writers Guild of America East, said yesterday that they regard the Walt Disney Company’s recently announced residuals policy regarding iPod downloads as “a call to arms.” Disney has said that it regards Apple as a retailer or an exhibitor of its content, rather than a distributor, and as a result will pay residuals at a low rate first established for Beta and VHS tapes. On each $1.99 download, the Guild said, Disney will receive $1.40 but will calculate residuals on only 20%, or 28 cents. The writer’s share will come to less than half a cent per download. “This unilateral decision by Disney was met with disappointment and righteous indignation by virtually the entire talent community,” said the guild presidents, Chris Albers and Patric Verrone, in a letter to guild members. “Rest assured, our Guilds will take all affirmative legal action to see that this inequity is resolved to our benefit.”

– Staff Reporter of the Sun

AIRLINES

SOUTHWEST LEADS INDUSTRY-WIDE FARE HIKE

DALLAS – Southwest Airlines led a broad fare hike across the airline industry, raising fares by up to $10 for a one-way ticket as the company seeks to offset an expected $600 million jump in its jet fuel costs. Southwest’s increase was matched by American Airlines; United Airlines; Delta Air Lines; Continental Airlines; Northwest Airlines; and US Airways Group, according to airline officials.

A spokesman for JetBlue said the carrier had not raised fares.

– Associated Press

NEWSPAPERS

MCCLATCHY TO SELL PHILADELPHIA, SAN JOSE PAPERS

McClatchy expands its geographic footprint and online presence with the acquisition of Knight Ridder, but the company will be watched closely as it attempts to integrate its buy and reap value from the assets.

The Sacramento, Calif., newspaper publisher said yesterday that it would buy Knight Ridder for about $4.5 billion in cash and stock, plus the assumption of $2 billion in debt. McClatchy said it plans to sell 12 Knight Ridder newspapers, including the large Philadelphia Inquirer, the Philadelphia Daily News, and the San Jose Mercury News, saying the papers are located in cities that “do not fit the company’s long-standing acquisition criteria, chiefly involving growing markets.”

– Dow Jones Newswires

IN BRIEF

The National Association of Realtors expects sales of existing homes to drop 5.7% this year as mortgage rates and home prices climb. … Cablevision Systems said customers can now get Howard Stern on-demand by subscribing to “Howard TV” for $9.95 a month.

– Dow Jones Newswires