Issue link: https://digital.copcomm.com/i/1157135
T he most innovative and exciting features of the new Commercials Contracts are the Upfront Use Packages: Upfront Plus, Upfront Flex and Upfront Digital. These options provide the flexibility that advertisers and ad agencies need, while guaranteeing members significant and predictable payments for their work. The terms of the traditional Commercials Contracts will still be available for those employers who prefer them, but the Upfront options are a complete and thoughtful response to the needs of a changing industry. In his recent appearance on the SAG-AFTRA podcast episode "How the New Commercials Contracts Change the Game," SAG-AFTRA Chief Contracts Officer Ray Rodriguez praised the Upfront Use Packages as a new feature that benefits all players in the advertising industry. "It was a true win-win: Everybody left feeling like they had gotten what they wanted and, meanwhile, we created opportunities for the membership and the industry as a whole to increase the footprint of the contracts," said Rodriguez. Each of the three models require a substantial upfront payment. If the employer chooses Upfront Plus, on-camera principals are guaranteed a $20,000 payment. If the employer chooses Upfront Flex, the on-camera principal gets an $8,000 advance, with continuing payments for all use beyond that guarantee. If the employer chooses Upfront Digital, the on-camera principal receives $3,825 for made-for-digital commercials. Off-camera fees are set at 75% of the on-camera rates for all three Upfront models. Another revolutionary aspect of the upfront payment options is the 12-month maximum period of use, which allows members and their agents to negotiate for more money, sooner. In another significant gain, session fees are not creditable and are paid in addition to all use fees. The new packages also come with their own set of editing provisions — permitted, unpermitted, paid and addressable — each of which contains different levels of compensation and protections for the performer. Introducing the New Upfront Use Packages I n addition to an increased session fee of $350, the Audio Commercials Contract also offers a brand-new, simplified use payment structure. The Audio Flex model allows for predictable payments that include compensation for tags and mechanical edits and reflect the way the industry produces audio ads today. T he new 2019 SAG-AFTRA Commercials Contract and Audio Commercials Contract are now more relevant than ever before, and allow employers to hire professional performers for every kind of ad they need. While still very new, these groundbreaking contracts are already being embraced by the advertising industry and will lead to an increase in union work opportunities and member earnings. "The new upfront use package provisions truly reinvigorate these contracts and undoubtedly will help advance our goal of preserving and growing union commercial work for years to come," said National Executive Director David White. "From the biggest national campaign to the smallest social media-branded post, every ad can be a union ad." Changes to the Audio Commercials Contract 38 SAG-AFTRA | Summer 2019 | sagaftra.org