New Media Commercials FAQ

Assume, hypothetically, that Producer bargains at the time of engagement for an option allowing unlimited editing rights, and the parties agree to an upfront fee for the option. If the option for unlimited editing rights is subsequently exercised, the Producer must pay the additional agreed upon fee for the unlimited editing rights within 15 working days after notice of the exercise of the option. The option fee itself is due and payable at the time the original session fee is due.

Example: Performer’s original session was November 3, 2006, and an option fee for extended editing rights is agreed to at the time of booking for an amount of $567.10. There is further agreement that if the option is exercised at any time during the maximum period of use, an additional “exercise fee,” separate and above the option fee of $567.10, at an agreed upon rate of $1,134.20, is due. Payment of the original session fee and the option for unlimited editing rights is due 12 working days from the session. The additional “exercise fee” that had been agreed upon is due 15 working days after notice of such exercise.

Producer must contact performer(s) and separately bargain for extended or unlimited editing rights.

Demanding a “clean contract” is a clear violation of the Commercials Contracts. Producer may inform performer of intent to hire at scale, so long as the Producer delineates the rights to be acquired. Performers who do not accept the terms as set out by the Producer have the right to audition and negotiate for higher terms.

The Producer must obtain the consent of the performer and bargain for payment of not less than the required contract minimums for such uses, plus the difference between what was paid for the New Media or Internet use and not less than 300% of the applicable session fee for 1 year of use and an additional payment of not less than 300% of the applicable session fee for an additional year, subject to the contractual limitations regarding the maximum period of use.

Example: Commercial is made for the Internet, and 6 months into the negotiated 1 year maximum period of use, Producer wishes to air the commercial on broadcast television. Producer contacts performer’s agent for consent, and bargains for use. Original payment for Internet use was $567.10. Therefore, 2 additional payments of $567.10 are due to meet the minimum 300% requirement, plus any broadcast use payments. Holding fee payments must also be paid.

The initial term of use for move over from broadcast and/or cable to Internet or New Media is one year, for not less than 300% of the applicable session fee. For an extension term, Producer may use the commercial for the remainder, if any, of the maximum period of use, for not less than an additional 300% of the applicable session.

Yes. Producers are required to provide the union(s) with copies of employment agreements for both made for Internet commercials and made for New Media commercials within 12 working days of employment.

Producer is also required to file copies of employment contracts for all 8-Week Use Cycles.

There are two possible scenarios:

Scenario 1: If a Producer does not initially bargain for Internet or New Media use, and the performer does not check off the “do not consent” boxes on their employment contract, the Producer has the right to pay a minimum of 300% of the applicable session fee for Internet or New Media use for a one-year term. This term begins at the time of use, but may not exceed the original 21-month maximum period of use. Payment for such use shall be paid no later than 15 working days after the first date of use.

Scenario 2: If the performer does check off the “do not consent” boxes on their employment contract, the Producer must first obtain written consent from the performer, and must bargain for use at not less than 300% of the applicable session fee. Term of use is one year from the first use, but no later than the expiration of the 21-month maximum period of use. Payment for such use shall be paid no later than 15 working days after the first date of use.

It is a subject of bargaining between the Producer and the performer as to whether a session fee can be credited against use with respect to commercials made for New Media. However, for commercials made for broadcast or cable that are subsequently moved over to the Internet or New Media, there can be no crediting of session fees or holding fees.

The performer must then be paid not less than 300% of the applicable session fee for 1-years use plus holding fees. As long as the holding fees continue to be paid the Producer can continue to use the commercial for a second year upon payment of not less than 300% of the applicable session fee, subject to the contractual limitations regarding the maximum period of use.

Yes. The performer remains bound by exclusivity so long as the Producer continues to pay holding fees. Conversely, if the Producer pays 300% of the applicable session fee for use on the Internet or in New Media but does not continue to pay holding fees as required under the broadcast/cable provisions, the performer is released from exclusivity and is free to accept work for a competitive advertiser/product.

If negotiated at the time of engagement: Payment must be made, along with the session fee(s), no later than 12 working days after the session work is completed.
Example: Performer is booked to work on November 1, 2006, and extended editing rights have been negotiated at the time of booking. Payment is due 12 working days after session: November 17, 2006.

When negotiated after the session: Producer must first obtain written consent from the performer(s) and bargain for extended or unlimited editing rights. Payment shall then be made not later than 15 working days after the date that the performer consents to such editing rights.

Example: Performer’s original session was November 3, 2006, and extended editing rights were not negotiated until December 11, 2006. Payment is due 15 working days after December 11, 2006; January 3, 2007.

No. If not prohibited by the Performer’s Standard Employment Contract, Producer must first pay not less than 300% of the applicable session fee for initial move over, and extended or unlimited editing rights must be separately bargained for, above the required minimum move over fee.

If editing rights are not separately bargained for, the provisions of Section 26 (TV) and Section 23 (Radio) shall apply.

The 300% minimum is the fee to move over a broadcast or cable commercial into any New Media platform. The bargaining between the Producer and the performer can cover all or only limited new media platforms.

If Producer also chooses to move the broadcast or cable commercial onto the Internet, an additional 300% minimum is due.

No. Each commercial moved to broadcast and/or cable from New Media or the Internet are to be paid separately as defined in Section 26 (TV) or Section 23 (Radio), even if the Producer has bargained for additional editing rights for New Media and/or the Internet.

No. Producer may only bargain for session and intended use fees. All other terms and conditions are subject to the terms and conditions of Schedule A Working Conditions.

Penalties and allowances, although bargainable with the performer, are also subject to additional payment and may not be included as part of a negotiated fee.

Pension & Health/Health & Retirement must also be paid separately and must be computed on the basis of all compensation, including compensation bargained directly with the performer.