The Business of Commercials!! 229contracts to allow for a joint union-industry study of the developing and
changing commercials market.
These agreements cover commercial work in both television and radio
and address such issues as session, holding, foreign, theatrical/industrial
and Internet fees; wild spot use fees and schedules, voice-over performers’
and on-camera work on cable, as well as health and pension benefits.
Throughout the year, AFTRA and SAG work together on various issues
related to commercial work. In addition to a study, AFTRA, SAG, and the
JPC agreed that:
- Along with advertisements that appear on TV, radio and the
Internet, the agreement will also cover all commercials that appear
in new media—for existing platforms such as cell phones and for
future platforms yet to be developed. - Actors will receive a six percent increase in basic compensation, and
the contribution to both unions’ pension and health plans will go
from 14.3% to 14.8%. The agreement provides advertisers with more
flexibility to edit commercials for the Internet and new media.
(Important note: AFTRA and SAG would like to add the following
clarification: If the advertisers wish to obtain broader Internet or
new media editing rights, for commercials made initially for use on
broadcast or cable television, then, in addition to the minimum use
payments called for by the contract, they must bargain with the per-
former regarding the additional compensation to be paid for such
editing rights. The extension agreement does not provide for a spe-
cific minimum payment as the basis of such bargaining.) - A New Media Committee, comprised of representatives from both
the unions and the industry, will be formed. This Committee will be
empowered to make adjustments to the agreement to accommodate
changing technologies and shifting paradigms within the commer-
cials industry. - Advertisers will receive a one-year waiver, which will allow adver-
tisers to experiment with a shorter cycle of use in the new media and
Internet areas.
AFTRA chief negotiator Mathis L. Dunn Jr., and SAG chief negotiator John
McGuire issued the following joint statement: ‘‘Because of the tremendous
growth of the Internet and digital technology, the unions have agreed to a
two-year extension to conduct a comprehensive joint study that will allow
us to determine whether existing pay structures should remain the same
or be modified. This agreement also means that actors will have achieved
increased opportunities for work and better wages and benefits. In a rap-
idly evolving media environment, our agreement demonstrates that per-
formers and advertisers can work together to deal with change and build a