new media agreement/residuals/television presentation
TRANSCRIPT
Objective
To introduce and discuss:
• The various types of SAG-AFTRA New Media
Agreements that are signed by Producers of New
Media content in order to provide a better
understanding of the terms and conditions of such
agreements;
• Advance payment of residuals along with residual
payment information and;
• Rest period rules. 2
3
New Media Agreements
HBSVOD
Three Tiers
Tier 1
“Unbreakable Kimmy Schmidt”
“Mozart In The Jungle” “The Get Down”
Tier 2
“Fuller House”
Tier 3
“The Path”
Special Agreements Independent Producers
Dramatic Programs
“Orange is the New Black” “Deadbeat”
Non-Dramatic Programs
“Characters”
Fully Negotiable
AMPTP, Authorizer Companies and Very Low Budget Independent
Productions
Pilots & Series
“Horace and Pete”
Movies
“Dance Camp”
High Budget Subscription Video-On-Demand
(HBSVOD) Agreements
Tier 1 Breakdown
• 15 million or more subscribers
• Full TV rates (no crediting)
• Current Examples: Netflix.com, Amazon.com
Tier 1 Budget Thresholds:
Length of Program Tier 1 Thresholds
20-35 Minutes $2,000,000 or more ($2,100,000 as of July 1,2016)
36-65 Minutes $3,700,000 or more ($3,800,000 as of July 1, 2016)
66-95 Minutes $4,000,000 or more
96 Minutes or More $4,500,000 or more (plus $2,250,000 for each additional 35 minutes) 4
High Budget Subscription Video-On-Demand
(HBSVOD) Agreements
Tier 2 Breakdown
• 15 million or more subscribers
• Full TV rates (35% crediting)
• Current Examples: Netflix.com, Amazon.com
Tier 2 Budget Thresholds:
Length of Program Tier 2 Thresholds
20-35 Minutes $1,300,000 to $2,000,000 ($2,100,000 as of July 1, 2016)
36-65 Minutes $2,500,000 to $3,700,000 ($3,800,000 as of July 1, 2016)
66-95 Minutes $3,000,000 to $4,000,000
96 Minutes or More $3,000,000 to $4,500,000 (plus $2,250,000 for each additional 35 minutes) 5
High Budget Subscription Video-On-Demand
(HBSVOD) Agreements
Tier 3 Breakdown
• Less than 15 million subscribers
• Full TV rates (35% crediting)
• Current Example: Hulu Plus (Hulu.com)
Tier 3 Budget Thresholds:
Length of Program Tier 3 Thresholds
20-35 Minutes $1,300,000 or more
36-65 Minutes $2,500,000 or more
66-95 Minutes $3,000,000 or more
96 Minutes or More $3,000,000 or more (plus $2,250,000 for each additional 35 minutes) 6
High Budget Subscription Video-On-Demand
(HBSVOD) Agreements
Terms and Conditions of the full SAG-AFTRA CBA & TV Agreement
are applicable to HBSVOD programs, except:
“Major Role” Performers
• The “Major Role” performer provisions in the Television Agreement shall not
apply.
Travel Time
• For Tier 2 and Tier 3 programs, travel time may be compensated at straight
time on days for which the Television agreement requires premium pay for such
travel (Traveling on a 6th or 7th day).
Reuse of clips into another HBSVOD episode
• May be negotiated at time of original employment.
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High Budget Subscription Video-On-Demand
(HBSVOD) Agreements
35% Crediting for HBSVOD Tiers 2 & 3
35% of scale for any series or term contract performer will be
credited against other compensation/monies due to such
series or term contract performer (e.g., overtime, meal and
rest period penalties, or residuals). This crediting is in
addition to any separately negotiated advance payment of
residuals.
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Crediting for Programs made under
Tier 2 & 3 HBSVOD
Crediting Example
Series Performer is engaged on an one hour Tier 2 HBSVOD series for 7 episodes
at $30,000 per episode. How much is the per episode crediting amount for such
series performer?
Step 1 Determine the minimum episodic rate for such series performer: Information
pertaining to SAG-AFTRA performer minimums can be found on the SAG-AFTRA
website.
$4,221.00 is the current minimum rate for a series performer engaged on a one hour
episodic series with more than 6 episodes but less than 13 episodes guaranteed.
Step 2: Take 35% of such minimum rate to determine the creditable amount.
Up to $1,477.35 (35% of $4,221.00) of performer’s episodic rate may be credited
against any compensation/penalties otherwise due to such series performer. 9
High Budget Subscription Video-On-Demand
(HBSVOD) Agreements
Crediting Example (cont’d):
If such series performer is owed $950.00 for a rest period
violation for episode 101, the Producer may credit such
amount which reduces the credit balance to $527.35
($1,477.35 -$950.00). The Producer may elect to use to this
remaining balance to credit against any other
compensation/penalties due to such series performer for
episode 101.
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High Budget Subscription Video-On-Demand
(HBSVOD) Agreements
Screen Credits
“Click-through” credits may be used.
Contributions
All contributions for new dramatic HBSVOD programs are made to
SAG P&H.
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High Budget Subscription Video-On-Demand
(HBSVOD) Agreements
Reuse
Initial compensation for a High Budget SVOD program shall
constitute payment for one (1) year of use on the platform of
initial exhibition (and any related or affiliated foreign
subscription video-on-demand platforms).
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High Budget Subscription Video-On-Demand (HBSVOD) Agreements
Residuals for continued exhibition of a Tier 1 or 2 HBSVOD program on its initial exhibition platform:
Exhibition Year Percentage of TAC to the Applicable Prime Time
Ceiling
Year 2 30.0%
Year 3 30.0%
Year 4 25.0%
Year 5 20.0%
Year 6 15.0%
Year 7 10.0%
Year 8- 12 8.0%-2.5%; Each Year Thereafter 1.5%
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Current Minimum Advance Pay Thresholds:
• $8,000 to advance pay residuals for a Network Prime Time exhibition of any 20 – 35 minute HBSVOD picture.
• $11,000 to advance pay residuals for a Network Prime Time exhibition of a HBSVOD picture longer than 35 minutes.
• $9,000 to advance pay any other residuals due for exhibition of any HBSVOD picture.
Requirements to Advance Pay Series or Weekly Performers:
• Contract must contain a separate provision.
• The advance payment must be separately listed, and paid in addition to salary.
• Initial compensation amount must be separately and specifically set forth as salary.
*May not advance pay a day performer or term contract performer.
Theatrical
Exhibition
Network
Exhibition,
e.g. NBC,
ABC, CBS,
FOX
Syndication
Exhibition,
e.g. CW,
local
broadcasts
Foreign Free
TV Exhibition,
outside the
U.S./Canada
e.g. broadcast,
basic cable,
free streaming
Home
Video
Exhibition
, e.g. VHS,
DVD, Blu
Ray, etc.
Pay TV
Exhibition,
e.g.
Showtime,
HBO, VOD,
etc.
Basic
Cable
Exhibition,
e.g. TNT,
F/X, Syfy,
etc.
Internet
Streaming
Exhibition
, e.g.
Hulu,
YouTube,
AVOD,
etc.
Internet
Rental
Exhibition
, e.g.
Nexflix,
Amazon
Prime,
etc.
Electronic
Sell-Thru
Exhibition
, e.g.
iTunes,
etc.
Made for
Theatrical
No
residuals
Gross
Receipts
Gross
Receipts Gross Receipts
Gross
Receipts
Gross
Receipts
Gross
Receipts
Gross
Receipts
Gross
Receipts
Gross
Receipts
Made for
Network,
Syndication,
Foreign TV,
Pay TV, or
Home Video
Fixed Fixed (Run
Based)
Fixed (Run
Based) and
Gross
Receipts
Fixed and
Gross Receipts
Gross
Receipts
Gross
Receipts
Gross
Receipts
Fixed and
Gross
Receipts
Gross
Receipts
Gross
Receipts
Made for
Basic Cable Fixed
Fixed (Run
Based)
Fixed (Run
Based) and
Gross
Receipts
Fixed and
Gross Receipts
Gross
Receipts
Gross
Receipts
Fixed (Run
Based) and
Gross
Receipts
Fixed and
Gross
Receipts
Gross
Receipts
Gross
Receipts
Original and
Derivative
High Budget
made for
Subscription
Internet
Fixed Fixed (Run
Based)
Fixed (Run
Based)
Fixed and
Gross Receipts
Gross
Receipts
Gross
Receipts
Gross
Receipts
Gross
Receipts
Fixed and
Gross
Receipts
Gross
Receipts
Original (low
budget) made
for Internet
Fixed Fixed (Run
Based)
Fixed (Run
Based)
Fixed and
Gross Receipts
Gross
Receipts
Gross
Receipts
Gross
Receipts
Gross Receipts
(if residuals are triggered)
Derivative
(low budget)
made for
Internet
Fixed Fixed (Run
Based)
Fixed (Run
Based)
Fixed and
Gross Receipts
Gross
Receipts
Gross
Receipts
Gross
Receipts
Fixed and
Gross
Receipts
Gross
Receipts
Gross
Receipts
Negotiable New Media Agreements
Dramatic Programming
Rates, terms and conditions are per Sideletter 21 of the SAG-
AFTRA/AMPTP Codified Basic Agreement and Sideletter H of the SAG-
AFTRA Television Agreement.
• Covers Original and Derivative programming.
• Applicable to all budgets below the established HBSVOD thresholds
or that are less than 20 minutes in length.
• All rates, terms and conditions, except as otherwise noted, are
negotiable between the Producer and Performer/Representative.
• Initial compensation can be deferred.
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Negotiable New Media Agreements
Dramatic Programming
Applicable Provisions of the SAG-AFTRA CBA &
Television Agreement
• Nudity
• Pension & Heath
• Late Payments
• Arbitration
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Negotiable New Media Agreements
Non-Dramatic Programming
Applicable Provisions of the SAG-AFTRA Network
Television Code
• Paragraph 61: Payment
• Paragraph 66: Individual Contracts
• Paragraph 95: Grievance & Arbitration
• Paragraph 102: AFTRA Health & Retirement
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Negotiable New Media Agreements
Reuse for Dramatic and Non Dramatic Programming
Original Programs
• Initial compensation shall constitute payment for twenty-six (26) consecutive weeks of use on any Consumer-Pay Platform and all uses on Free-To-Consumer Platforms.
• Residuals of 3.6% of “Distributor’s Gross” will be due for exhibition on Consumer-Pay Platforms beyond the twenty-six (26) consecutive week period if the Original Program is budgeted at or above $25,000 per minute, as exhibited.
Exhibition Period Free to the Consumer
Platforms
Consumer Pay Platforms
First 26 weeks Included in Initial
Compensation
Included in Initial
Compensation
Beyond 26 weeks Included in Initial
Compensation
3.6% Distributor’s Gross
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Special New Media Agreements
Dramatic & Non-Dramatic Programming
SAG-AFTRA will negotiate minimum rates on behalf of
performers based on production budgets.
Terms, Conditions and Reuse
• Same as the negotiable New Media agreements.
• 17% contribution rate to either SAG P&H or AFTRA H&R,
based on applicable agreement.
20
Rest Period
12 hour Rest Period: Performer is entitled to 12 hour rest period
from time s/he is finally dismissed until his/her first call
36 hour Rest Period: Applies if performer is not required to work
either on the 24 hours constituting the first or last day of any
workweek and has not worked for Producer during the 12 hour
proceeding such day
56 hour Rest Period: Applies to performers working on a studio
workweek and are given two consecutive days off (Usually
Saturday and Sunday)
56 Hour Rest Period may be reduced to 54 hours if such call
for the new work week is not earlier than 6:00 a.m.
Rest Period Violations
General Rule
Performer may waive the rest period without Unions consent
If such rest period violation is not over two and a half hours on a
studio location or two hours on an overnight location such
performer may be required to waive their rest period
If the performer waives their rest period violation, they are entitled
to a day’s pay or $900.00 (Day Performer); $950.00 (Three Day,
Weekly, Series Performer) whichever is the lesser sum
Thank You!
Beth Millman, National Director, Television Contracts [email protected]; 323.549.6839
David Besbris, Director, Television Contracts
[email protected]; 323.634.8116
Dan Bowser, Director, Television Contracts [email protected]; 323.549.6466
Caroline Coderoni, Manager, Television Contracts/New Media Workgroup
[email protected]; 323.634.8287
Olga Rodriguez-Aguirre, National Director, Theatrical Contracts [email protected]; 323.549.6818
Jennifer Gaudry, National Director, Residuals Claims
[email protected]; 323.549.6510
Treslyn Williams, Director, Promotional Announcements & Trailers [email protected]; 323.634.8163