DGA Monthly

J U L Y 2 0 2 3 I 3 Highlights of the new agreement include the following historic breakthroughs for Directors and their teams: Generative Artificial Intelligence (GAI) Duties performed by DGA members must be assigned to a person and GAI does not constitute a person. Employers may not use GAI in connection with creative elements without consultation with the Director or other DGA- covered employees. Mandated twice-yearly meetings with the Studios to discuss and negotiate over AI. • Ensures that DGA member's job duties will not be replaced by, or assigned to, GAI and creates a formal structure for DGA to meet with the Studios on how GAI will be used in the future. Global Streaming Residuals Significant increase in global SVOD residuals. Created a new residual structure that, for the first time, is based on the number of foreign subscribers. Largest streaming services will now pay $89,415 for one- hour series for first three years of use, a 21% increase overall (and 76% increase in the foreign residual). Residual for 13 years of use on the largest services increased by 28% to $168,773. Three-year worldwide residual increase of 34%, to $230,250, for feature-length SVOD projects with budgets of at least $13M. • New residual structure captures global SVOD growth and ensures DGA members share in global distribution of their work. • New, highest-tier SVOD residual far exceeds the residual paid for virtually all network series. • New residual formula significantly increasing residuals: o Increases residuals on all platforms. o Builds for the future – residuals grow as platforms expand around the world. o Increases residuals paid in later years by 85%. The Negotiations Committee members pose for a group photo following the reaching of a historic new agreement. — Continued on page 4. General Wage Increases More than 13% compound increase in wages over three years: • Year 1 – 5% • Year 2 – 4% • Year 3 – 3.5% (Note: Does not apply to Pay TV and HB SVOD Directors – see below under "Episodic Directors"). • The first 5% annual wage increase and highest 3 year wage increase in over 30 years. DGA 2023 CONTRACT RATIFICATION

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