Screen Magazine: Vol. 29, Issue 15

Screen Magazine - Index

Screen Magazine - Screen Magazine: Vol. 29, Issue 15 - Index

It appears that both the Screen Actors Guild (SAG) union and the Alliance of
Motion Picture and Television Producers (AMPTP) are far apart on terms of a new
contract, and as the industry heads into fourth quarter work, the lack of a new
agreement has many industry workers
feeling apprehensive. A major sticking
point is the residual schedule for “new
media” – or the lack of one, according
to the union.
According to a statement released by
SAG: “The AMPTP’s recent offer to SAG
doesn’t include residuals for programs
made for new media and streamed
again on ad-supported new media
platforms. So a program originally made for ABC.com could be available for
re-viewing on ABC.com, or any other ad-supported Internet outlet, as often as
possible and forever with no residuals, no matter how much money is generated
or how many times it is shown. (There is one minor exception if a program is made
for and re-run on a pay platform like iTunes and the budget is more than $25,000
per minute.)
“Just as we have shown we can work successfully with low-budget filmmakers,
we are flexible and can accommodate fledgling new media productions under
SAG contracts. We have offered to base made-for new media residuals on a
percentage of revenue with no fixed obligation. If there is no money generated,
no residuals are paid. But if revenue is generated from programs available over
time, actors should receive residual payments. So far, management’s negotiators
have rejected SAG’s reasonable solution, while management’s proposal could
mean the beginning of the end of residuals.”
In my opinion, it is hard to argue with SAG on this subject, and its offer of a
percentage of revenue versus a fixed residual seems to be fair. If there are no
revenues coming from a particular program then there would be no residual,
however if revenue is generated then a percentage would be paid to those
actors who helped create it.
According to an AMPTP statement, “The continued refusal of SAG’s negotiators
to accept AMPTP’s final offer means that actors will continue to work indefinitely
under the expired contract - an old contract that contains none of the $250
million in additional compensation provided by AMPTP’s final offer, and an old
contract that provides none of the new media rights and residuals that other
Hollywood Guild members have now been enjoying for months.
“SAG has permitted non-union Internet production under its contract since
2001. AMPTP has offered to extend SAG jurisdiction to original new media
production, including low-budget programs that employ a single ‘covered
actor.’ The AMPTP’s final offer also guarantees residuals when original new
media productions are re-used and terms to increase pay and residuals if the
program is eventually exhibited in traditional media. None of these rights and
residuals exists under the contract that expired on June 30th.”
If an agreement is reached and ratified by August 15th, the contract is
purportedly retroactive to July 1, 2008.
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By Robert Leach
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Magazine August 11, 2008 Volume 29, Number
15 (ISSN 1070-7573) is published bi-weekly by
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