DGA Monthly

J U L Y 2 0 2 3 I 1 Dear Members: On June 6th, our Negotiations Committee Co-Chairs and National Executive Director reported the terms of our new collective bargaining agreements to the National Board of Directors at a specially convened meeting. The National Board voted unanimously to recommend that members vote YES to ratify the Agreements. In this new agreement, we were able to win many significant advancements, including a number of important industry 'firsts' including: essential protections regarding AI, terms and conditions in non- dramatic SVOD programs as well as high-budget AVOD programs, Feature Director compensation for "soft prep," expanded paid post-production for Episodic Directors, a new foreign streaming residuals structure based on subscribers, and banning live ammunition on sets. We also obtained critical improvements in wages, streaming residuals, safety, diversity, and additional creative rights gains. What is particularly striking about the agreement is the breadth and depth of the achievements made, providing significant new benefits for members in every category. Key Highlights of the Agreement include: • Wages and Benefits: Won the highest general wage gains in more than 35 years including a 5% increase in the first year of the contract, 4% in the second year and 3.5% in the third year. In year two of the agreement, an additional 0.5% wage increase will fund a first-time new parental leave benefit for DGA members. • Global Streaming Residuals: Achieved significant increases in the residuals for dramatic programs made for SVOD by securing a new residual structure to pay foreign residuals based on number of foreign subscribers. The result is a 76% increase in foreign residuals for the largest platforms so that residuals for a one-hour episode will now be roughly $90,000 for the first three exhibition years. • Generative Artificial Intelligence: Secured agreement that the customary and contractual duties assigned to DGA-represented employees must continue to be assigned to DGA-represented employees covered by the agreement, and that GAI does not constitute a person. • Non-Dramatic Programs: For the first time, we established terms and conditions for Directors and their teams on non-dramatic (e.g., Variety) programs made for SVOD. We have improved residuals for Directors, which will now be shared with Associate Directors and Stage Managers. • High Budget Dramatic AVOD Terms and Conditions: We achieved new terms, creative rights protections, working conditions and improved residuals – which include UPMs and Assistant Directors, for our members working in scripted dramatic projects made for free to the consumer streaming services such as Freevee, Tubi, and Roku. • Feature Directors: For the first time, we gained compensation for the months of "soft prep" Feature Directors currently perform for free prior to the start of the Director's official prep period. • Episodic Directors: For Pay TV and SVOD, Episodic Directors won expanded paid post-production creative rights, and gained an additional guaranteed shoot day for one-hour programs. Together, these improvements will result in a 28% increase in the guaranteed minimum compensation for most Directors working on one-hour series made for Pay TV or High Budget SVOD from $50,764 to $64,960 over the term of the Agreement. • AD/UPMs: We achieved a one hour reduction in the workday for most Assistant Directors which results in extended-day payments being triggered one hour earlier. • Safety: We obtained concrete safety advancements including a pilot program to require the employment of dedicated safety supervisors and risk assessment; expanded safety training programs for both Directors and their teams, and the ban of live ammunition on set. In addition to these breakthroughs, we have increased Studio transparency in residuals reporting that will result in greater enforcement and larger residual payments, made improvements in diversity and inclusion, added Juneteenth as a paid holiday and many additional gains for members in all categories. I am proud to present this agreement to you for your approval. This ballot represents your highest responsibility as a Guild member and the core of why the Guild has existed and remained strong for almost 90 years – to protect your economic and creative rights and freedoms. The Negotiations Committee and the Guild's National Board unanimously – and enthusiastically – recommend that you vote YES for ratification of the Agreements. All the very Best, Lesli Linka Glatter President Lesli Linka Glatter DGA 2023 CONTRACT RATIFICATION A Message from DGA President Lesli Linka Glatter

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