Issue link: http://digital.copcomm.com/i/1280987
34 SAG-AFTRA | Summer 2020 | sagaftra.org Streaming Forward: Recognizing Changing Business Models in Syndication As our industry changes, so has SAG-AFTRA. Recognizing the continued decline of broadcast syndication and the inherent challenges to producers in syndicating under a fixed residual in the current market, the union agreed to the industry pattern replacing the fixed residual with a 6% revenue-based residual in order to secure improvements such as better fixed residuals in high-budget subscription streaming — the fastest-growing part of our business. Importantly, those programs that are currently syndicated under an existing license will continue to pay residuals under the current, fixed residual formula through the duration of the license, including any extensions. The union secured an additional protection that, for performer contracts entered into on or after July 1, 2020, the new syndication residual may not be advance paid, ensuring that performers actually receive checks for future syndication exhibition of their work. This protects members, while positioning performers for enormous gains in the streaming-dominated television landscape of the future. Background Gains Background actors benefit from an additional covered position for episodic productions in the West Coast zones, effective in the second year of the deal, resulting in an additional 2,100 background jobs per year under historical employment patterns. The general wage increase will also translate into millions of dollars for background actors and the improved funding of the benefit plans helps anyone who qualifies. Travel Under the new agreement, the union also conformed to the extension of the existing domestic travel protocol by allowing international short flights (less than 1,000 air miles) to be booked as coach internationally. Importantly, long-distance flights over 1,000 miles will still require producers to fly performers in business class. In addition, the union secured an additional protection requiring access to private lounges and priority boarding privileges, when available, for short trips in coach outside of North America. This provides security for performers who may be recognized in these airports due to exhibition of their work in international markets. Platform Exchange We accepted a provision designed to help producers find the best platform for programs made for television or subscription-based streaming platforms by giving them certainty that they can pay residuals as though the program was always going to be made for the platform on which it initially exhibits. In order to protect performers against some of the potential for lost compensation caused by a platform switch, there are several additional protections that apply, including a sunset to this provision at the end of the term. Visit sagaftra.org/contracts2020 for additional details and FAQs. CONTINUES FROM PREVIOUS PAGE $255 million in gains from increases to minimums 2.5% wage increases in the first year 3.0% in the second year 3.0% in the third year The National Board shall have the option to redirect .5% of the second and/or third year wage increases to the benefit fund contribution rates.