In what’s shaping up as a big deal for the small screen, Hollywood labor unions have reached agreement with Touchstone Television (a unit of the ABC TV Network) covering mobisodes for the primetime series Lost. Though it covers but one show, the contracts set some parameters for cell phone content compensation, and help to potentially lay some groundwork for other deals covering mobile fare and new technology.
“This unique agreement [for actors] represents a crucial first step into a new frontier of production and content distribution,” stated Alan Rosenberg, president of the Screen Actors Guild (SAG). “Touchstone has made clear its commitment to revisit the contract terms as this new business develops. As a result, we have worked with them to ensure that actors are properly protected as we all embrace this emerging technology. We will continue to work with others in the industry in the development of new forms of entertainment, so that we can prosper together.”
Also reaching accords on the Lost mobisodes were the Writers Guild of America (WGA) and the Directors Guild of America (DGA). The SAG deal is of particular interest to the advertising community in that emerging media outlets figure to be a key part of discussions for a new contract covering commercials and other ad forms. The current ad industry contract with SAG and the American Federation of Television and Radio Artists (AFTRA) expires at the end of October. An initial meeting between representatives of the actors’ unions and the Joint Policy Committee of the Association of National Advertisers (ANA) and the American Association of Advertising Agencies recently took place on April 8. Parties on both sides of the table characterized the session as a full and fair discussion of the many issues involved. The discussion also focused on consideration of a joint study of alternate methods to compensate performers for their participation in commercials that appear on TV and radio as well as in the growing array of new media. Should the JPC and the unions agree to commission such a joint study, it would be conducted by an independent consultant with experience in TV, radio and labor relations.
Provisions of SAG’s Lost deal–which covers the employment of actors for series mobisodes that are no more than five minutes in length and are used on cell phones–include:
- An escalating minimum age that begins at $425 for an eight-hour day as of April 1, 2006, and moves to $450 as of April 1, ’07.
- Actors will be paid the minimum per day or per mobisode, whichever is greater.
- Use on cell phones after 13 weeks triggers the following residual formula: An actor receives a $75 advance payment, which is creditable against a residual of 3.6 percent of the license fee for such use. If the mobisode is distributed via the Internet, the actor again receives a $75 advance and the same residual of 3.6 percent of the distributor’s share is payable if the viewer pays to access the mobisode. A six percent residual is payable if the Internet use is ad-supported. Use on ABC.com with neither of these revenue sources does not trigger a residual.
- Residuals for DVD use and broadcast of the mobisodes are based on the Guild’s television agreement. Relevant parts of that same agreement are incorporated into the deal, including pension and health contributions, working conditions, and legal arbitration provisions.
- These terms expire at the same time as SAG’s Television Agreement and Codified Basic Agreement on June 30, ’08.
