Even though actors may soon require compensation for online video versions of their work, video's value is still slated to grow.

One major piece of an online video campaign is in fact the video itself. Depending on budget and campaign goals, a question many advertisers face is, "Should we repurpose the assets we used on TV or create new assets that take advantage of the opportunities the internet affords?" With the near-limitless number of interactive features advertisers can use in their video rich media, the prospect of producing can be very tempting and successful.

As the rights to use video produced for television distribution online currently fall into a gray area, repurposing has, until now, been the cheaper option. The time that these allotted rights can stay in this gray zone, though, is quickly coming to a close.

Why haven't internet rights been an issue until now?
In August of 2006, when the pressure started to mount, the Screen Actors Guild (SAG) and the American Federation of Television and Radio Artists (AFTRA), the heavyweights in the arena of wage setting for performers, announced a study to examine appropriate methods of compensation for actors in video distributed in new, non-traditional ways. These included online distribution (streaming and podcasting), mobile distribution and video-on-demand initiatives.

Announcement of this study was made in a joint statement from SAG Chief Negotiator John McGuire and AFTRA Chief Negotiator Mathis L. Dunn Jr, who stated that, "Because of the tremendous growth of the internet and digital technology, the unions have agreed to a two-year extension (of the current Commercials Contract) to conduct a comprehensive joint study that will allow us to determine whether existing pay structures should remain the same or be modified. This agreement also means that actors will have achieved increased opportunities for work and better wages and benefits. In a rapidly evolving media environment, our agreement demonstrates that performers and advertisers can work together to deal with change and build a stronger partnership that benefits us all."

Why is it an issue now?
The agreement to hold off contract revisions and rights negotiations made it easy for advertisers to edit and distribute content and commercials across the new media platforms. It also gave a near-free pass in allowing agencies to utilize their commercial assets on the internet at a low rate.
 
It's now May, however, and 2008 is quickly approaching.

In a statement to the Subcommittee on Telecommunications and the Internet, on behalf of the Writers Guild of America, West and SAG, Philip Rosenthal, creator and executive producer of "Everybody Loves Raymond," made the desires of his guilds' members very clear, stating that "these non-traditional media platforms and cutting-edge delivery systems are only as good as the creative content they feature. Whether it's shown on a television set, a computer screen or a mobile phone -- it's all TV -- and writers, actors and other creative talent must receive fair compensation for the content they help create."

The time when the actors and writers of internet distributed video no longer take a "lay-dee-dah, business as usual" stance on their compensation is quickly approaching.

What are the ramifications?
(Always keep in mind that change is good.)

1.) Talent costs are going to go up. You can't have a completely new system for distribution and monetization, which can put content in the public realm into perpetuity, and on which advertisers are already capitalizing, without expecting all players involved to want to profit. If online distribution ads to the bottom-line, that increased profit must come at some cost.

2.) User-generated content is going to be flavored with Celebrity-Created Content. According to Kevin Morse's article "Hollywood Showdown" in The Wall Street Journal, if producers and actors can't find common ground for compensation from digital distribution, "They [talent] may just start creating original content for the new media because it is easy (…) And once they do so they may enjoy the lack of interference from 'suits' and become smitten with the ability to put their work out immediately and world-wide." Online distribution and shrinking tech costs have given everyone an opportunity to control the means of production.

Some recent examples of this include Alanis Morissette's YouTube release of her "My Humps" parody video, and Will Ferrell and Adam McKay's "Funny or Die" videos.

For advertisers, this new content provides a world of possibility for product integration and sponsorship. For the content-producers, this means whole new revenue streams from syndication (on the right platforms of course). For publishers who syndicate this content, this means more content with built in audiences that can be monetized.

3.) Agencies and producers get to think creatively and even more strategically about producing video and commercials for specific media. Any increased production costs will serve as a milestone in the maturation of the industry. In the coming months it will become impossible for online video campaigns to simply be considered compliments to larger TV efforts. The power of new mediums is being felt everywhere, and research is backing up its viability.

As evidenced by NBC Universal's new ":30 and Beyond" ad campaign (which was plastered around New York during Upfront Week), the traditional commercial is losing ground while opportunities like made-for-web commercials with interactive touch points and real-time DR response, branded shows shot specifically for online syndication and the ever-looming world of mobile entertainment are here to usher in a new era in the use of video.

Conclusion
So long as there are products to sell and people to market to, video still stands as one of the most powerful and emotive tools that advertisers can use. As the industry matures, and the money making potential of video evolves from speculation to hard fact, everyone involved in the process, from its conception, funding, production and distribution is going to prosper from its growth.

This is the dawn of very lucrative industry, and while some people may be a little groggy, a lot of opportunity is on the horizon.

Bradley Werner is the director of marketing for The Fifth Network. Read full bio.