We are pleased to tell you that we have reached a tentative agreement with the Alliance of Motion Picture and Television Producers on successor agreements covering motion pictures, scripted primetime dramatic television and new media production. Please see a detailed description of the tentative agreement below:
A Record-Breaking Deal
In a total package valued at a record-breaking $318 million, the union achieved gains in residuals paid for high-budget subscription streaming; unprecedented increases to the contribution rate to the pension, health and retirement funds (up to 2%, including optional wage diversions); groundbreaking improvements to provisions governing nudity, simulated sex and sexual harassment for all performers, including background; additional protection of the overtime provisions for weekly stunt performers on episodic productions; and an increase to the background count in episodic television in the West Coast zone in the second year of the contract.
Better Residuals Secured for Our Future.
Significant improvements were secured in the residuals rate paid to performers for exhibition of their performances for high-budget subscription streaming on platforms like Amazon, Disney+, Hulu and others. The improvements include:
- Lower (Better) Budget Thresholds for High-Budget Subscription Streaming. Reducing the budget needed to trigger the high-budget subscription streaming terms, thereby shrinking the subset of streaming programs that do not benefit from the application of scale and other traditional television terms;
- Better Residuals Formulas.
(Ceilings) Increasing the ceilings that cap the amount of performer compensation included in the residual calculation;
(Percentages) Increasing the percentages that are applied to performer compensation to calculate the residual for the first three years of availability of a program; and
(Foreign) Increasing the percentage used to calculate the residual for availability of a high-budget subscription streaming program on an affiliated foreign streaming service.
Additionally, the application of “grandfathering” will be nearly eliminated by year two of the agreement so that new episodes of existing series can enjoy the benefit of these increases. The agreement adjusts the formula for advertiser-supported streaming of high-budget, subscription streaming programs that are exhibited on a related platform and provides clarity for how subscriber counts are determined for newly-launched subscription streaming platforms.
From Past to Future: Recognizing Changing Business Models in Syndication.
Recognizing the continued decline of broadcast syndication and the inherent challenges to producers in syndicating under a fixed-residual in the current market, the union conformed to the industry pattern replacing the fixed residual with a 6% revenue-based residual in order to secure improvements in high-budget subscription streaming - the fastest growing part of our business. Importantly, those programs that are currently syndicated under an existing license will continue to pay residuals under the current, fixed residual formula through the duration of the license, including any extensions.
The union secured an additional protection that, for performer contracts entered into on or after July 1, 2020, the new syndication residual may not be advance paid, ensuring that performers actually receive checks for future syndication exhibition of their work. This protects members while positioning performers for enormous gains in the streaming-dominated television landscape of the future.
Under the new agreement, the union also conformed to the extension of the existing domestic travel protocol by allowing international short flights (less than 1,000 air miles) to be booked as coach internationally. Importantly, long-distance flights will still require producers to travel performers in business class. In addition, the union secured an additional protection requiring access to private lounges and priority boarding privileges, when available for short trips in coach outside of North America. This provides security for performers who may be recognized in these airports due to exhibition of their work in international markets.
Highlights of the tentative agreement include:
- Total package valued at $318 million over three years;
- 3-year agreement commencing July 1, 2020 and expiring June 30, 2023;
- Wage increases of 2.5% percent in the first year, 3% in the second year and 3% in the third year, with options to divert 0.5% to SAG-AFTRA Health Plan or the SAG Pension Plan/AFTRA Retirement Fund in years two and three;
- Improved residuals for original programming made for high-budget subscription streaming;
- Substantial gains to funding the SAG-AFTRA Health Plan with a 1% increase to the contribution rate in year one, which is forecast to generate approximately $54 million in additional funding for the next three years, and the opportunity to add another 1% to either the Health Plan or the Pension Plan/Retirement Fund through wage diversions in years two and three;
- Meaningful improvements to protections for principal and background performers working in the nude or performing in simulated sex scenes, including improvements to notice and consent requirements;
- Improvements to how overtime is calculated for weekly stunt performers employed by the week on episodic series under schedule H-II;
- Improvements to money and schedule breaks;
- An additional covered background position for West Coast episodic production commencing in year two.
The new three-year agreement will be presented to the SAG-AFTRA National Board for its approval, to be followed by a member ratification vote. Watch your email for further details.
David P. White
National Executive Director