Commercials Contracts Stacy Marcus, JPC Legal Counsel Kim Stevens, - - PowerPoint PPT Presentation

2016 SAG-AFTRA Commercials Contracts

Stacy Marcus, JPC Legal Counsel Kim Stevens, JPC Director of Industry Relations

Agenda

• General Structural Comments
• Revisions to Television Contract
• Basic Economic Changes
• The “Real People” Issue
• Digital Issues
• Pain Points
• Administrative Changes
• Other Changes
• Revisions to Radio Contract

The 2016 Commercials Contracts

• The JPC and SAG-AFTRA concluded negotiations at 3:05am

April 3, 2016

• The new Contracts are effective April 1, 2016
• The Union Board approved the Contracts during the April

meeting

• The Contracts were ratified by Union membership May 9,

2016

Gener General al Str tructu uctural Comments al Comments

Term – Section 2

• 3 years – April 1, 2016 through March 31, 2019

To which commercials do the new Contract terms apply?

• Under Section 3, the new Contract applies to:
• All commercials produced on or after April 1, 2016;
• All new or additional versions of commercials produced under prior SAG,

AFTRA and/or SAG-AFTRA TV commercials contracts due to editing and/or integration.

Drafting Agreements

• Agreed Upon Interpretations – All previously agreed upon

interpretations of the Commercials Contract are now included in the body of the contract in the appropriate sections

• Equalizing OCP and Extra Wardrobe Allowances
• Audition Reports to include director’s name and removes

references to age, ethnicity, and disability, and substitutes “gender” for “sex”

• Agency ID – The A-1 and A-2 will include a space to indicate

agency representation when payment goes directly to the performer

• Deleted reference to “cow catchers” and “hitch hikes”

Prior Bulletins Now Incorporated

• Unwired Network Waiver (new Section 34.D)
• Payment for Running/Wild Footage (Schedule D.III)
• Late Night Waiver – Added FOX (Section 34.C)
• Digital Sub-Channels – Title now lists all current sub-channels

(Section 34.B.3)

Definitions (Recognition and Coverage and Section 4)

• “Producer” – In order for a performer to be employed by a

Producer… the performer must be employed by a bona fide producer of commercials covered by the Commercials

• Contracts. The Union reserves the right to reject or revoke the

signatory status of any company if that company is not a bona fide producer of commercials.

• “Commercial”
• The phrases “intended for showing over television” and “intended for

showing [over Internet and New Media]” were removed

• New sideletter to address “which are capable of being used on television

in the same form as on the Internet and/or New Media”.

Commercial v. Content – Co-Ed Agreement

• New sideletter
• Requires that the union notify the JPC of any claims brought under the

Co-Ed agreement that content is a “commercial”

• Requires notice of any determination made
• Specifies that any such determination cannot be relied upon by either

party in an arbitration under the Commercials Contract

• Bottom Line: No one other than the JPC and the Union should

be able to determine what is a “commercial”

Revisions to the Commercials Contract

Basic Economic Changes

Changes Relating to Wages, Allowances and P&H

• Upfront wage – 7%
• National cable – 6%
• Class A network – 2%
• Internet and New Media
• Made Fors: 8-week – 150%; 1-year – 375%
• Move Overs: 8-week – 175%; 1-year – 425%
• P&H – 1.2%

The Special Interest Groups

• Extra Stand-Ins – 10%
• Make-up Removal

The Real People Issue

Live Event, Man on the Street & Hidden Camera

• Added to Section 8 - Now available across all media
• Producer may film or record activities of persons in public without

covering such persons under the Contract, provided such persons are neither scripted to speak any dialogue nor cast for the commercial.

1. Live Events – Events attended by 20+ persons who are neither hired nor cast by Producer to attend the event. Event cannot be staged for the purpose of producing a commercial. No individual direction of participants. 2. Man on the Street – Commercials where an interviewer interviews people on the street, at public venues or at live events and asks them questions/make statements/gestures to elicit a response/reaction. Interviewer is a covered person whether or not they appear or perform in the commercial. 3. Hidden Camera – Comprised of footage captured by a hidden camera without direction to the individuals being filmed. Interviewer, if any, is a covered person whether or not they appear or perform in the commercial.

Testimonials by Non-Professionals

• Available only to JPC authorizers
• Non-professional persons giving testimonials are not covered under the

Contract

• Casting call, if any, or hiring process, must make clear that Producer is seeking “non-

professionals”

• Person must sign a declaration that he/she has not previously been paid as a

principal performer in a commercial, play, TV program, theatrical motion picture, or entertainment program made for I/NM

• Person is not widely known to the public at large and is not a “celebrity”
• Appearance consists of him/her describing his/her experience with the

product/service/advertiser, and any such opinions/experiences must be independently verifiable and typical of those of a reasonable consumer in a similar situation

• No delivery of slogans/taglines
• Coverage also waived for persons appearing in the same commercial who

have a relationship with the person giving the testimonial (e.g., family member or treating physician)

Additional Waivers

• If a Producer needs a waiver for other creative executions that

necessitate non-professionals that are not otherwise covered under the employee waiver, live event/man-on-the- street/hidden camera, and/or testimonial waivers, the union will in good faith consider granting such a waiver to Producer

Digital Issues

Flexibility

• Addition of a 4-week cycle for Made Fors and Move Overs for

125% of session (Sections 36 and 37)

• Streaming – The ability to simulcast is now included with the

payment for network, cable and wild spot use (Sections 33, 34 and 35)

Disposable Content – Social Media Waiver

• Applies to commercials made for use on social media platforms

including, but not limited to, Facebook, Twitter, Snapchat, Instagram, Vine, Tumblr, Twitter, LinkedIn)

• Film and record multiple commercials in a single session for a

single session fee (no crediting)

• Use fees – 15% of a session fee per commercial (NOT per

platform) for a 30-day cycle

• 1-year MPU
• Section 26 does not apply
• May not negotiate for unlimited edits

Pain Points

Pain Points

• Section 6 Persons Covered – Now specifies that prop masters, riggers and
• ther similar crew who do not appear in a commercial are NOT covered

persons

• Section 7 Still Photos – Added to Section 7 – Still Photos: Unless the stock

footage was produced for an advertising purpose, you are not required to pay persons appearing in the footage that would otherwise have qualified as

• OCPs. Also added language exempting footage licensed from professional

and collegiate sports leagues for non-featured players

• Section 17 Use of Commercials – Expands ability to use commercials to

promote signatory business to digital trade publications, awards shows, case studies and reels

• Sections 20 and 44 Payment Terms – Extends to 15 working days from 12
• Section 20.G. Directorial Changes – Makes clear that payment for alternate

scenes and lines is only required if such scene or line is reflected in a script

• r storyboard or when it does not relate to the fundamental concept
• f the commercial

Pain Points (Continued)

• Section 24 (Union Standards) – Revised to include carve-out: “except as
• therwise permitted hereunder”
• Section 42 (Foreign Use) – Payment for foreign use now includes the right

to use the commercial on I/NM in the foreign zone so long as the I/NM use is geofenced

• Section 56 (Transfer of Rights) – Added a new subsection to 56. Contract is

waived for nonunion commercials acquired by a signatory unless and until they are modified OTHER THAN as permitted under Section 26 subsequent to the acquisition

Editing – Section 26.K. (Special Offers & Promotions)

• In 2013, we added a waiver for multi-brand retailers who sell

products directly to the public (e.g., supermarkets, toy stores, department stores and discount retailers). The waiver was not available to advertisers that predominantly or exclusively sell their own products (e.g., fast food restaurants and single-brand retailers).

• In 2016, we eliminated the waiver and drastically simplified

26.K.

The New 26.K

• Applies to ALL advertisers
• Subsection 2 was deleted in its entirety
• A commercial for an advertiser may be changed to reflect different special
• ffers or promotions, sales or giveaways, sweepstakes or sales events.

Separate session fees shall be payable to on and off-camera performers employed to render services in making each such change, but any different versions may be considered one commercial for the purpose of use fees.

• Only 1 reference to any special offer/promotion may be made, although it

may appear anywhere

• The reference must be in the nature of a “tag”
• Commercial must be produced by and media time bought by the advertiser
• Multiple variations can run in the same market at the same time
• 2 week limitation on each version

Administrative Changes

Administrative Changes

• Section 18 PSAs – Deleted reference to 501(c)(3)
• Section 30 MPU – Performer may now email the notice to renegotiate; provided that the

employment contract and production report reflect an email address and that the email is sent with a read receipt

• Section 44 Translation – Additional payment to performers if translation is required at an

audition

• Schedule A
• Creative Session Calls: Greater flexibility during auditions and clarified what constitutes a Creative

Session Call. Now the session shall be deemed a creative session call only when a principal performer is required to devise dialogue or action not suggested by a script, storyboard or by specific direction.

• Producer may cast and audition without disclosing the advertiser or product as long as they do disclose

in generic terms who or what the advertiser/product is (e.g., packaged goods company or mobile device)

• Minors – Teachers/tutors must have current teaching credentials and a copy of such credentials must be

provided to the parent/guardian

• Holidays – Added Veterans’ Day
• A-1 and A-2 – Added a confidentiality provision

Other Changes

How We Protected the Deal

• Section 58 – Arbitrations: revised to require the union to also

provide to the JPC copies of all waivers granted

• Section 68 – Most Favored Nations:
• Expands the MFN to include waivers granted
• Revised to specify that the JPC may extend any waivers or more

favorable provisions to its authorizers

• Carve-out for local/regional codes and local/regional

advertisers/agencies

Studies

• Union study of alternative compensation for performers in

Internet/New Media

• JPC study of industry and technological changes that impact

the agreement, including the definition of a commercial

• 2 studies must have the same timeline and must be conducted

by either the same consultant or by 2 different consultants working in coordination

Audio Recorded Commercials Contract

Changes to the Radio Contract

• Name changed from “Radio” to “Audio”
• Term, rate increases and P&H increases are identical to

television, where applicable, EXCLUDING increases to Internet/New Media

Contact Us

• @theJPCInfo
• Sign up for updates at www.jointpolicycommittee.org
• Email:
• Kim Stevens kstevens@jointpolicycommittee.org
• Stacy Marcus smarcus@reedsmith.com