general managers/operations directors · administration of multi-employer electronic media...
TRANSCRIPT
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11
ELECTRONIC MEDIA STRATEGY DISCUSSION
Electronic Media Strategy
League of American Orchestras 2016 Conference
General Managers/Operations Directors
Michael Bronson and Joe Kluger
Electronic Media Consultants
League of American Orchestras and
Employers’ Electronic Media Association (EMA)
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ELECTRONIC MEDIA STRATEGY DISCUSSION
Electronic Media Strategy Agenda
• Background Context
• Electronic Media Project Planning
• EMA – AFM Integrated Media Agreement
• Breakout Roundtable Discussion re: electronic media projects
you would like to pursue
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ELECTRONIC MEDIA STRATEGY DISCUSSION
Electronic Media Background Context
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ELECTRONIC MEDIA STRATEGY DISCUSSION
Orchestral Mission
• Historical:
• Live music performances “in person”
• For audiences in concert halls
• Electronic media: secondary role for some (but not part of
core mission)
• Today:
• Live music performances for widest possible audiences
• Digital capture/distribution should be core strategies for:
o Bringing more people to hear music in concert hall and
o Bringing music to more people outside concert hall
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ELECTRONIC MEDIA STRATEGY DISCUSSION
Traditional Product/Distribution Definitions
Cable TV
Satellite radio
Internet streaming
CDs
DVDs
Downloads
Terrestrial radio
(Standard TV)
LPs
(Audio cassettes)
(Videocassettes)
Collectible
Digital
Analog
Ephemeral
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ELECTRONIC MEDIA STRATEGY DISCUSSION
Changing Product/Distribution Definitions
• Changes in technology and customer expectations:
• Blurring lines between “ephemeral” and “collectible”
• Customers demanding more control
• “On demand” (temporary customer control of access to
content via device under distributor’s control):
• Time shifting: Podcasts, DVRs
• “On-demand:” Internet streaming, digital cable TV
• Cloud storage of collectible customer owned content
• “Social media” (customer control of content/distribution):
• YouTube
• Tumblr
• Google+
• Snapchat
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ELECTRONIC MEDIA STRATEGY DISCUSSION
Current Electronic Media Trends
• Less demand for full performance content; increased opportunity
to exploit excerpts and value-added content for promotion
• Declining costs of capture/distribution (lower entry barriers)
• Internet disintermediation (retain distribution control)
• Digital broadcast spectrum expansion (audio and audio-visual)
• “Long-Tail” economic value in products with limited individual
mass market value, but large aggregate value:
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ELECTRONIC MEDIA STRATEGY DISCUSSION
Audio Recording Sales Units All Genres
8
CDs
Digital
Singles
Digital
Albums
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ELECTRONIC MEDIA STRATEGY DISCUSSION
21st Century Social/Electronic Media Principles
• Tapscott and Williams: “Wikinomics”
• The differences between successful businesses and failures:
• The losers built websites.
• The winners launched vibrant communities.
• The losers built walled gardens.
• The winners built public squares.
• The losers innovated internally.
• The winners harnessed the innovation and effort of their users.
• The losers jealously guarded their content and software.
• The winners shared them with everyone.
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ELECTRONIC MEDIA STRATEGY DISCUSSION
Electronic Media Project Planning
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ELECTRONIC MEDIA STRATEGY DISCUSSION
Current Opportunity
• To take advantage, arts groups must identify:• Identify organizational goals for distributing content
• “Set SMART” objectives for media activities (why)
o Specific, Measurable, Ambitious, Realistic, Time-based
• Determine activities/content to accomplish objectives (what)
• Choose target audiences (to whom/where)
• To implement plan:• Select distribution strategies to reach audiences (how)
• Undertake cost/benefit analysis (time + money)
• Incorporate as “core” priority in operating budget
• Take initiative (proactive vs. reactive) and
• Outsource functions where appropriate
“Carpe diem” – Seize the day
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1212
ELECTRONIC MEDIA STRATEGY DISCUSSION
Electronic Media Goals
• Before undertaking any electronic media activity, each arts
group must be clear about the goals and objectives of its
electronic media activities:
• Artistic (archiving/showcasing high quality performances)
• Marketing (building/engaging audiences for performances)
• Expanding the audience (beyond concert hall)
• Institutional branding/promotion/pride
• Stimulating contributions (direct/indirect)
• Generating incremental net revenue for artists
• Generating incremental net income for the institution
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ELECTRONIC MEDIA STRATEGY DISCUSSION
Electronic Media Strategies
• Audio Ephemeral:
o Radio
o Internet Streaming
• Audio Collectible:
o Live CDs
o Studio CDs
o Downloading
• Audio On-demand:
o "On-Demand" Streaming
o Podcasting
• Audio-Visual Ephemeral:
o TV
o Internet Streaming
• Audio-Visual Collectible:
o DVDs
• Audio-Visual On-demand:
o "On-Demand" Streaming
(e.g. YouTube)
o Podcasting
• Evaluate which electronic media activities are an
effective strategy for attaining desired goals:
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ELECTRONIC MEDIA STRATEGY DISCUSSION
Target Audiences and Content
• Determine what, where, and to whom:
• Where to distribute:
o Locally, Regionally
o Nationally, Internationally
• What content to distribute:
o Full length works
o Excerpts
o Traditional repertoire
• To whom to distribute:
o Young children/families
o Students (K – 12; college)
o Young professionals
o Classical concert attendees
o Contemporary repertoire
o Pops
o Education
o Classical non-attendees
o Non-classical, non-attendees
o Institutions (hospitals,
nursing homes, etc)
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1515
ELECTRONIC MEDIA STRATEGY DISCUSSION
Cost/Benefit Analysis
High Benefit/
Low Net Revenue
High Benefit/
High Net Revenue
Low Benefit/
Low Net Revenue
Low Benefit/
High Net Revenue
Net Revenue
Impact
Benefit Impact
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ELECTRONIC MEDIA STRATEGY DISCUSSION
Audio Goals and Strategies (SAMPLE)
Y=YES M=MAYBE N=NO
Y-I = INDIRECT BENEFIT
Y-D = DIRECT BENEFIT TIC
KE
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(H
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BE
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TR
AD
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NA
L
CO
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PO
RA
RY
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PS
ED
UC
AT
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P =
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RF
OR
MA
NC
E
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CE
RP
TS
AUDIO EPHEMERAL:
Local Radio Y Y Y M N N Y N N N N M M Y Y M M L H Y Y M N Discuss Pops quality issues
National Radio N Y Y M Y N Y Y Y N N M M Y Y M M M M Y Y N N Expand station carriage
Satellite Radio Would Sirius take our content?
International Radio N Y Y Y H L
Internet Streaming Y Y Y M N N Y Y Y Y N Y Y Y Y M M L H Y Y N N Limit window?
AUDIO COLLECTIBLE:
Live CDs (archival) H L Except for specials
Live CDs (new) H L
Studio CDs (new) H L
Downloading Y Y Y M M M Y Y Y Y N Y Y Y Y M N L H Y Y N N Expand to all 18 classical weeks
AUDIO ON-DEMAND:
"On-Demand" Streaming Y Y Y Y N N Y Y Y Y N Y Y Y Y M N L H Y Y N N Premium for subscribers and donors?
Podcasting
NOTES/CONTENT
GOALS AND
OBJECTIVES
PROGRAM
CONTENT
TARGET
LOCATION
PROGRAM
CONTENT
COST/
BENEFIT
ELECTRONIC MEDIA
PLANNING WORKSHEET TARGET AUDIENCES
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ELECTRONIC MEDIA STRATEGY DISCUSSION
Audio-Visual Goals & Strategies (SAMPLE)
Y=YES M=MAYBE N=NO
Y-I = INDIRECT BENEFIT
Y-D = DIRECT BENEFIT
TIC
KE
T S
AL
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EX
PA
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AU
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NC
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PR
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NA
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NA
L
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NA
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L
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(H
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BE
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(H
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TR
AD
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NA
L
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P =
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OR
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NC
E
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TS
AUDIO-VISUAL EPHEMERAL:
Local TV Y Y Y M Y N Y N N N Y Y Y Y Y Y Y H H Y Y M Y
National TV N Y Y M Y N Y Y Y N N N M Y Y M Y H M Y Y M Y
International TV
Internet Streaming Y Y Y M M N Y Y Y Y Y Y Y Y Y Y Y H H Y Y M Y
AUDIO-VISUAL COLLECTIBLE:
DVDs
Downloading
AUDIO-VISUAL ON-DEMAND:
"On-Demand" Streaming (YouTube) Y Y Y M N N Y Y Y Y N Y Y Y Y M N L H Y Y M Y E
Podcasting Y Y Y M N N Y Y Y Y N M M Y Y M N L M Y Y N M E
NOTES/CONTENT
GOALS AND
OBJECTIVES
PROGRAM
CONTENT
TARGET
LOCATION
PROGRAM
CONTENT
COST/
BENEFIT
ELECTRONIC MEDIA
PLANNING WORKSHEET TARGET AUDIENCES
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ELECTRONIC MEDIA STRATEGY DISCUSSION
Implementation Planning
• Take initiative (proactive vs. reactive)
• Determine responsibility for production and distribution functions
• Obtain contractual business agreements
• Obtain contractual agreements with performers and rights holders
• Develop financial plan:
• “Must Do” projects (built into core budget)
• “Nice To Do” projects (require dedicated funding)
• Obtain internal approvals
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1919
ELECTRONIC MEDIA STRATEGY DISCUSSION
Rights Clearance Overview
• Obtaining agreements with:
• Musicians
• Conductors
• Soloists
• Chorus
• Composers/Publishers
• Stagehands
• Performance Venues
• Process:
• Shared goals + strategies
• Collaborative decision making =
• Consensus agreements
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EMA
EMA – AFM Integrated Media AgreementApril 2, 2015 – June 30, 2017
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EMA
EMA Overview• Organization:
– Symphony, Opera and Ballet Employers Electronic Media Association (EMA), a 501(c)(6) non-profit business league organization.
• Members:
– Any dues-paying, non-profit symphony, opera or ballet institution in the United States that employs musicians under the terms of a collective bargaining agreement with an AFM Local union.
• Mission:
– Representation of EMA Members in the negotiation and administration of multi-employer electronic media collective bargaining agreements with the AFM (and possibly other unions).
• Services:– Representation in negotiation of electronic media CBAs– Advice and counsel on contract interpretation– Advice and counsel on dispute resolution with AFM/musicians– Representation (in some cases) of contract grievances
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EMA
EMA Leadership Team
• Mark Volpe, President (Boston Symphony Orchestra)
• Bill Thomas, Chair, Negotiating Committee (NY Philharmonic)
• Marilyn Pearson, Legal Counsel (DLA Piper)
• Consultants:– Joe Kluger: [email protected]
– Michael Bronson: [email protected]
• Please contact EMA consultants: – In advance of planning any electronic media activity
– Before you or your musicians contact the AFM on any issue
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EMA
IMA Overview• Review of SOB multi-employer bargaining (MEB) history
– 1982 – 2005: Media Committee role in bargaining for convenience
– 2009: Incomplete MEB negotiation and resulting AFM drafted IMA
– 2013: Establishment of EMA
– 2014 – 2015: EMA – AFM negotiation of new IMA
• New Integrated Media Agreement– EMA - AFM overarching bargaining objectives
– Review of bargaining process
– Resulting agreement:
• Some significant improvements, especially news & promotion
• Still a complicated & inflexible agreement
• EMA objectives: 2015 – 2017
– Assist EMA members to maximize use and benefit of new IMA
– Gather data to prepare for next negotiations
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EMA
IMA Scope
• Musicians employed by symphony, opera or ballet orchestras under terms of AFM Local CBA
• Included:– Audio recordings from live performances
– Audio-visual recordings from live performances or special calls
– Audio or audio-visual recordings from archival tapes of live performances
• Excluded:– Local radio & television (see IMA p. 2 definitions & exclusions)
– Audio studio session recordings
– National Standard commercial television (e.g. “Olympics-type programs”)
– Per-Service Orchestras < 50% “core” musicians: project approval required
– “Non-Classical Featured Artist” programs > “historic” number or 1 per year
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EMA
News, Promotion and Donor Gifts
• Within Article VIII limits, no payment to musicians required
• Capture for news, promotion and donor gifts:
– Per service limit increased from 30 to 40 minutes
– Additional capture with Orchestra Committee OK:• New material from rehearsals or concerts
• Archival material from concerts
• Per instance or blanket annual approval
• Relationship to CBA:
– More liberal CBA news/promotion capture/use terms grandfathered
– More restrictive CBA news/promotion capture/use terms should be trumped by IMA (proactive clarification needed)
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EMA
News
• Capture: 40 minutes per service or more with Orch Comm OK
• Use for News:
– Use of material limit increased from 3 to 10 minutes
– OK to complete work or movement up to 3 minutes
– Up to 10 minutes on broadcaster website (no time limit)
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EMA
Promotion
• Capture: 40 minutes per service or more with Orch Comm OK
• Use of material limit increased from 3 to 5 minutes; and from 9 to 15 minutes in 3 five minute segments
• Up to 6 times per year, can use up to 15 continuous minutes, including a full movement, work or aria:– Each segment from different work or movement;
– Each segment either one composition up to 15 minutes or one movement of one composition up to 15 minutes;
– Employer does not provide media payments to anyone else
– Employer must report use of this clause to AFM
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EMA
Promotion
• Can make available on Employer website, full performance for on-demand streaming for 45 days:– One free to public performance per season (no Orch Comm OK)
– One not free to public performance per season (with full Orch OK)
• Volunteer Promotional Recordings:– Use of audio or audio-visual interviews/activities in which musician(s)
voluntarily perform on musical instruments without compensation
– Annual ask who is interested; equitable/suitable distribution of opportunities
– Mutual agreement on time and place
– Maximums: Recording, 45 minutes; Use, 15 minutes, Exhibition, 2 years
– OK to exceed maximums, if musicians are paid for activity and AFM approves
– Employer must report use of this clause to AFM
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EMA
Donor/Subscriber Gifts
• Guidelines for Gifts to Donors, Corporate Sponsors, Subscribers:– One CD, DVD, Audio or A-V Download, or streaming access via secure
portal may be offered annually to donors as a gift
• Donor minimum: Greater of $250 or program recognition level
• Maximum: 1,000 units or more with Orch Comm OK
• Orch Comm OK of project
– With AFM approval, a CD or DVD gift may be offered annually to a major corporate sponsor or underwriter
– 2X per year, subscribers or Multi-Ticket Buyers may receive free 10 minute download (or 2-week access to donor portal) with Orch Comm OK
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EMA
National Radio• 3 years unlimited broadcasts (live, delayed or from archive) via:
– Terrestrial radio, satellite radio, Internet radio, and all other wired/non-wired formats worldwide
– Includes simultaneous and on-demand streaming on employer or broadcaster/distributor websites
• Rates:– 4% Weekly Scale (32% per performance) per broadcast [$53.05 floor]
– 3% Weekly Scale (24% per performance) ≥4 broadcasts [$42.44 floor]
– Opera rate subject to local negotiation [$90.18 floor]
– 75% of applicable rate for foreign tour concert in that country only
– Subsequent 3-year period at 25% of original rate
• Orchestra Committee may OK add’l 3 years on demand streaming on Employer’s website only with no additional payment.
• Pre-existing radio agreements grandfathered
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EMA
Local Radio
• Local Radio broadcasts excluded from IMA scope
• (ARTICLE IX.D): OK to simultaneous streaming of local radio broadcasts with no additional payment to musicians. This does not include streaming on demand which is covered by provisions in Article X.
• (ARTICLE I.B.a): If no local station has classical music format, station nearest to Local’s jurisdiction deemed a “local” station.
• (ARTICLE I.B.a): Expand definition of local to include repeater stations within the state.
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EMA
Live Audio Recording: Article X
• Employer must retain ownership of copyright
• 3rd party license max 5 years (10 years with Orch Comm OK)
• CD or CD + download: – Symphony:
• 5.5% of weekly/44% per performance [floor of $84.87]; + $10 per 1K > 15K
• OR 7.5%/60% [floor of $84.87]; + No Tier payment
• Minutes of music increased from 76 to 80
– Opera:
• 5.5%/week/35% per performance [floor of $84.87]; + Tier of $10 per 1K > 15K
• OR 7.5%/week/47.7% per performance [floor of $84.87]; + No Tier payment
• Minutes of music increased from 126 to 130
– Per service orchestra with opera rate: upfront fee = greater of 35% or 44%
• Downloads + Streaming (no CDs):– 1% weekly/(8% per performance) per 45 minutes [$15.91 floor]
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EMA
Live Audio Recording: Article X
• Revenue share: – Symphony projects: 60% of Employer’s Net Revenue (direct costs)
– Opera projects: 22% of Employer’s Net Revenue (direct costs)
• Project approval: – Employer must discuss artistic/financial plan with Orch Comm
– Project approval only if musician costs < 35% of budget
• Right to record rehearsals only in very limited circumstances
• Patch Sessions for all projects:– 2 hour patch following live performance; 1st 30 minutes at < of concert OT
rate or SRLA patch rate; after 30 minutes at SRLA patch rate
– 2nd patch at SRLA rates up to 2 hours, subject to Orch Comm OK
– SRLA break rules apply to patch sessions
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EMA
Live Audio Recording: Article X-A
• REQUIRES EMPLOYER ELECTION & ORCHESTRA APPROVAL; THEN SET FOR TERM OF IMA
• CD or CD + download: – 3rd party license max 5 years (10 years with Orch Comm OK)
– Symphony:
• 6.0% of weekly/48% per performance [floor of $84.87]; + $10 per 1K > 15K
• OR 8.0%/64% [floor of $84.87]; + No Tier payment
• Minutes of music increased from 76 to 80
– Opera:
• 6.0%/week/37.5% per performance [floor of $84.87]; + Tier of $10 per 1K > 15K
• OR 8.0% /50.0% [floor of $84.87]; + No Tier payment
• Minutes of music increased from 126 to 130
– Per service orchestra with opera rate: upfront fee = greater of 37.5% or 48%
– Patch sessions as per Article X
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EMA
Live Audio Recording: Article X-A
• Downloads + Streaming (no CDs):– Employer must retain ownership of copyright and control
– 3rd party license max 7 years
– Orchestra Committee must agree on up-front payment, if any
– No patch sessions permitted
• Revenue share: – Symphony projects: 60% of Employer’s Gross Revenue
– Opera projects: 22% of Employer’s Gross Revenue
• Orchestra approval required for all projects
• Right to record rehearsals only in very limited circumstances
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EMA
Regional Television
• Emanating from within Local and expanded: – Statewide in Employer’s home state, or
– Including Designated Market Areas (“DMA”), defined by Nielsen Company on August 1 annually, contiguous to Employer’s DMA
• $37.13 per hour or established local rate
• 2 hour minimum payment
• Three (3) years unlimited broadcast on regional television
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EMA
A-V Educational Release
• Educational programming for Pre-K through 12 Classroom Use:– Via close-circuit, password protected internet, Internet2, DVD (not for sale)
and other technologies for classroom use
– Capture limited to one or two performances
– Rights period limited to ten (10) years
• Two projects during term: – Programs ≤45 minutes distributed without payment
– Programs > 45 minutes require 2% of weekly (16%/per perf) [$37.13 floor]
• Additional educational programs:– 45 min program: 2% weekly/16% per performance) [$37.13 floor]
– 60 min program: 2.5% weekly/20% per performance [$42.44 floor]
– 90 min program: 3% weekly/24% per performance [$50.92 floor]
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EMA
Other Provisions
• National and Foreign Television: per minute rates
• Non-Television Audio-Visual:– % of minimum scale (if Employer controls product)
– Per minute rates (if Employer does not control product)
• Documentary, Clips, Compilations– ≤3 minutes: no payment to musicians; 30 min of capture at one service
– 3+ up to 30 minutes at Standard TV “multi-capture” rate
• Audio Buffet: – 3% of base annual wage
– Capture: all concerts and one rehearsal
– “Basket” of material released
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EMA
General Provisions
• Pension: – Increased to 12%
– Inclusive of current rehabilitation plan contributions
• Revenue Participation:– Based on % of Net Revenue (net of direct costs only) for all projects EXCEPT:
• Article X-A audio streaming/downloading without CDs
• Audio-Visual Streaming of Single Program Where There Is One Capture or
• Optional Theatrical Release Rate Where There Is One Capture
– Symphony projects: 60% of Net Revenue or Gross Revenue
– Opera and Ballet projects will be 22% of Net Revenue or Gross Revenue
– Revenue Participation includes pension
• Health and Welfare – Payment of $18 per day (maximum of $90 per week)
– Paid to any employee not covered under an Employer plan.
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EMA
General Provisions
• EMG– Subject to Local CBA, EMG can be used to pay up-front & per-minute fees
– EMG cannot be used to make tier or revenue participation payments.
• Musicians to be Paid– All current members of the orchestra (or for per-service orchestras all
musicians on the roster) shall be paid for audio and audio-visual recordings
– In the case of symphony orchestra members performing sub-contracted services for an opera or ballet company, only those musicians actually performing shall be paid for audio and audio-visual recordings
• Labor Management Committee:– EMA/AFM representatives to discuss contract interpretation; financial
consultation and reporting; and recommendations for consideration in the bargaining for a successor Agreement
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EMA
Potential Problem Areas
• Opera companies that subcontract to symphony orchestras
• Non-Classical Featured Artists
• Promotion definition
• Star Spangled Banner – Sports Events
• Commercial Television
• EMG
• CBA-IMA conflicting language
• Jurisdiction over “local” media projects, not specified in CBA
• Project Approval Protocols (Orch Comm, Full Orch, AFM)
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EMA
Potential Problem Areas
• To minimize problems, please contact EMA consultants: – In advance of planning any electronic media activity
– Before you or your musicians contact the AFM on any issue
• Consultants:– Joe Kluger: [email protected]
– Michael Bronson: [email protected]
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4343
ELECTRONIC MEDIA STRATEGY DISCUSSION
Breakout Discussion
• What electronic media projects would you like to do that
you don’t think are possible?
• What are the primary goals and objectives of those
projects?
• What barriers do you face to implementing those
electronic media projects?
• What strategies can be pursued to overcome the barriers?
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4444
ELECTRONIC MEDIA STRATEGY DISCUSSION
“Some men see things as they are and ask why.
Others dream things that never were and ask
why not.”
George Bernard Shaw