Extreme Reach recently had the pleasure of hosting the ANA/4A’s Joint Policy Committee at a seminar covering the recent SAG-AFTRA contacts. The event was attended by over 120 industry professionals in Marina Del Rey, and featured speakers Doug Wood and Stacy Marcus of the law firm Reed Smith. Doug and Stacy were the lead negotiators for the industry team that bargained the new 2013 Radio & TV Commercials Contracts with SAG-AFTRA.
The top highlights from the event included a review of the most significant changes in the 2013 Commercials Contracts.
Rate Increases: Wages were increased by 6% across the board, and are retroactive to April 1. Any commercials produced on or after that date are subject to the new rates and terms. Cable use payments are now maxed at 3000 units, up from 2000 units. P&H goes from 15.5% to 16.8%.
Spanish Language Increases: Spanish Language TV commercials saw an increase of 5-10% in addition to the 6% base increase noted above. Use in Puerto Rico is no longer to be paid for as “foreign” use.
Editing Provisions: Advertisers are now entitled to have a second free lift under Section 26A (Shorter/Longer Versions) and Section 26K has been modified to allow certain retail advertisers to make multiple versions of a basic spot (featuring different products) without creating a “new” commercial and having to pay additional use fees. Those changes were formerly so cost-prohibitive that signatory agencies had been at a competitive disadvantage pitching retail business.
In this seminar recap, learn about important changes regarding Internet content, new Ad-ID requirements, the Clearinghouse Initiative and more.
Your Extreme Reach talent management team is here to assist you in understanding how to implement new contract terms and provisions. In fact, we’re making all necessary retroactive payments on behalf of our clients. Questions? Contact us!
The deal is scheduled to be reviewed by the SAG-AFTRA Board of Directors on April 20-21. Once approved, the agreement will then be sent to SAG-AFTRA membership for ratification, after which the new rate charts will be published.
So how will these new contracts impact advertisers and ad agencies?
All new commercial sessions that started on or after April 1, 2013 will be subject to the new rates, as will “new” commercials that are edited from existing footage. Payments made now for these commercials will need to be supplemented to new rates, once those are approved.
Here are some tips on what to consider while the final rates are undergoing approval:
• Rate changes could take effect in two ways. First, there will likely be an across-the-board increase in all scale wage rates, plus an increase in Pension & Health contributions. Second, there may also be changes to the formulae used to calculate a particular residual type. That will have a compounding effect on the increase, and will be important to consider when determining residual budgets.
• If you’re negotiating a new 21-month maximum use period for a commercial, it may be best to wait for the finalized rates before agreeing to new terms with agents. Typically, agents ask for the “new” wage scales, along with an additional percentage, so you’ll want to calculate just how much of an increase that amounts to.
• Any Term or Celebrity Contracts that have an effective start date of April 1, 2013 or later will likely be affected by an increase in the Pension & Health contribution rate.
The Extreme Reach Business Affairs team is here to help you navigate these changes. If you have any questions on the new deal between SAG-AFTRA and the JPC, feel free to contact us!
Jo Ann Kessler is the VP/Director of Business Affairs at Extreme Reach.
The venue was at capacity as Business Affairs, Casting and Production professionals discussed commercial production and union talent issues currently facing the industry.
I’d like to thank our keynote speaker, Stacy Marcus, an attorney in Reed Smith’s Advertising & Technology group. Stacy is well-known for her position as a negotiator for the ANA/4A’s Joint Policy Committee, which bargains the talent union contracts on behalf of the advertising industry. Her presentation, “To Be or Not To Be… A Commercial”, touched on some pressing topics.
Determining when branded videos fall under union contracts on the web isn’t easy. There is no hard and fast definition of an “internet commercial” in the SAG Commercials Contract — yet how we pay the performers and “real” people that appear in Web content depends on that contract’s language. And the difference in price can be substantial. As a result, this topic generated a wave of questions and numerous descriptions of the dilemmas industry professionals face on a regular basis. For example, length alone doesn’t define a commercial. Content that runs two minutes and 43 seconds can be considered a commercial. Content that’s 30 seconds may not be.
The discussion was lively, entertaining and illuminating. And I’ve barely touched the surface of what was covered.
Although this was just the inaugural event, I’m confident that future Business Affairs Round Table meetings will provide a great opportunity for our industry to share ideas and discover solutions. We’re looking forward to hosting these gatherings in New York, Chicago, LA and elsewhere on a regular basis. If you’re interested in learning about future events, or have suggestions for topics you’d like covered, contact us! We’d love to hear from you.
Jo Ann Kessler is the VP, Director of Business Affairs at Extreme Reach.
Extreme Reach CMO Robert Haskitt recently shared some tips with MediaPost on online video and TV campaign management.
Get the top 3 tips to ensure your ads are protected against quality and talent rights issues in this
According to the report, here are some of the very “cool” reasons we made the list:
- The Extreme Reach platform is the only pure software solution that streamlines the management and delivery of video advertising across TV and the Web.
- Our platform has further simplified video advertising workflows by integrating talent and rights compliance with the ad delivery process.