Marking the one year anniversary since the ratification of the groundbreaking American Federation of Musicians (AFM) “Jingles and Spot Announcement Agreement,” the Chicago Federation of Musicians (CFM, a local chapter of the AFM), has embarked on a multi-tiered promotional outreach targeting ad agencies and talent payment services to raise awareness and understanding of the contract’s “52-week Initial Use Cycle” provision, which, for the first time in the history of the labor union, allows advertising agencies to pay a one-year, up-front, flat fee for use of a commercial across multiple media, simplifying the amount of paper work needed under the former Commercial Agreements.
”This innovative agreement was designed to meet the needs of an ever-evolving industry,” said Gary Matts, CFM president. “By including a provision such as the one-year use cycle, ad agencies can offer their clients competitive options for original music similar to a one-year license.”
CFM director of electronic media Dean Rolando is spearheading the campaign’s efforts to connect with ad agencies and talent payment services in Chicago with meetings at their offices, Agency business affairs people, music producers and supervisors have been invited to participate in informal roundtables and Q&As moderated by Rolando. During these sessions, Rolando explains the provisions of the new agreement, when best to use them, what has changed from the previous agreement (in place from June 2011- 2014), and the advantages of using live musicians and original music on commercials and how this new provision can be more cost effective than a non-AFM contract.
“This Commercial Agreement is historic in that we now have a multi-platform, one-year cycle that is available for companies to use,” said Ray Hair, AFM president. “This is indicative of the union responding to trends in the industry that we believe are best served by making that option available.”
At a recent roundtable hosted at Energy BBDO’s offices, the entire business affairs department and music supervisor Daniel Kuypers heard Rolando cover a range of talking points pertaining to the new agreement. Some of the innovative provisions designed to drive an upturn in filing AFM commercials contracts and providing more work for local union musicians include: A new structural feature which permits advertisers to pay an upfront fee for a 52-week initial commercial use covering all media; and a waiver for certain types of Internet productions.
The discussion expanded to the advantage of creating original music for branding, the disadvantage to picking music in post (as opposed to cutting picture to original music), the union’s assistance in converting a licensed track into a contract spot with pension and welfare payments for musicians, and the long tradition of iconic “commercial songs” that have come out of Chicago music production companies including work for such brands as Coke and McDonald’s.
“This new contract is in response to the significant drop in AFM commercials filed over the past few years that our members have been concerned about,” explained Rolando. “Our members know this is a result of agencies doing non-AFM work, licensing existing songs, and use of library tracks, all of which they believe are not as effective in branding a product or service as using original music can be. We hope to reverse that trend with this progressive provision.”
Rolando noted that under the terms of the new “52 Week Initial Cycle Use Provision,” agencies who are signatories of the AFM should not feel compelled to go offshore and pay musician buy-out prices, which are oftentimes more money than the union rates under the new provisions. “This way they can get the best of both worlds,” he added.
Longtime CFM member Greg Allan, CEO/creative director of sonic content resource Sonixphere, and a partner in STIR Post Audio, was one of the first to bring to the CFM’s attention the need for an alternative to the former union contract to incentivize agencies to use original music and to offset the trend to opt for licensed tracks. “The music landscape has been changing for years. Ease of use, less paperwork, and simplification is key. This new AFM contract allows that to happen.”
Co-founder and creative director of Comma, Larry Pecorella, agrees with Allan. “It’s great that the CFM is getting the word out about this new asset. Agencies are happy to learn about it, they like the uniformity of it; the complexities of the former agreement gave rise to increased licensing and buying library tracks; the industry was moving faster than the contracts–now we have a solution to offset that trend.”
Rolando is currently setting up roundtables at DDB and FCB and welcomes all Chicago agencies to contact him to moderate meetings on site at their convenience. A social media campaign to promote awareness of the new provisions among union members also kicks into gear this month via Facebook and Twitter. In the fall, the CFM will host a rocking fundraiser bringing together musicians, music production companies and agency people for a night of live music at Laganitas Brewing Company. Proceeds will be donated to the Mercy Home for Boys and Girls Music Program, one of the many charitable causes the CFM supports.
