The move to distribute videos digitally has angered US entertainment trade unions.

The Hollywood Reporter reveals that unions are planning to take action against ABC. They are angered at ABC's decision to pay fees to people involved in creating shows based on a "discounted home video rate".

The "stage is set for a legal showdown", the report claims. Unions plan to launch action against the company because it introduced digital downloads without reaching an acceptable deal with them.

ABC is using a formula which allows the company to keep 80 per cent of revenue, in theory to cover manufacturing, marketing and other costs. This formula was originally agreed to cover sales of home videos, in which firms must pay for the manufacture, printing, and distribution costs associated with selling physical media.

Union president Alan Rosenberg said: "ABC's actions are flatly inconsistent with our collective-bargaining agreements and with labour law obligations and fail to fairly compensate performers for the use of their work and images."