New Media Agreement/Residuals/Television Presentation

SAG-AFTRA

New Media Agreement/Residuals/Television Presentation

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


(HBSVOD) Agreements

Tier 2 Breakdown

• 15 million or more subscribers

• Full TV rates (35% crediting)

• Current Examples: Netflix.com, Amazon.com



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


(HBSVOD) Agreements

Tier 3 Breakdown

• Less than 15 million subscribers

• Full TV rates (35% crediting)

• Current Example: Hulu Plus (Hulu.com)






96 Minutes or More $3,000,000 or more (plus $2,250,000 for each additional 35 minutes) 6


(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.

7


(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.

8

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


(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.

10


(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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(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).

12

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

AMPTP

Independent

Non-Dramatic

Networks

Independent

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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.

15


Dramatic Programming

Applicable Provisions of the SAG-AFTRA CBA &

Television Agreement

• Nudity

• Pension & Heath

• Late Payments

• Arbitration

16


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

17


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

Non-Dramatic

All Programs

Dramatic

Pilots/Series

Movies

19

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


Olga Rodriguez-Aguirre, National Director, Theatrical Contracts [email protected]; 323.549.6818

Jennifer Gaudry, National Director, Residuals Claims


Treslyn Williams, Director, Promotional Announcements & Trailers [email protected]; 323.634.8163

mailto:[email protected]









Documents

New Media Agreement/Residuals/Television Presentation