The Directors Guild of America (DGA) has announced that it has reached a tentative deal with the AMPTP after only five days of negotiations. The press release says it's a fantastic deal and everyone in Hollywood is trying to analyze it to see if it's as good as it sounds. Here's the Fact Sheet released by the DGA:
Wage Increases
Compensation for all categories except directors of network prime time dramatic programs and daytime serials increases by 3.5%, each year of the contract.
Compensation for directors of network prime time dramatic programs and daytimeserials increases by 3%, each year of the contract.
Outsized increase in director's compensation on high budget basic cable dramatic programs for series in the second and subsequent seasons:
For ½ hour programs: 12% increase in daily rate and increase in guaranteed number of days to 7 days.
Results in show rate increasing from $9,009 to $11,760.
For 1-hour programs: 12% increase in daily rate and increase in guaranteed number of days to 14 days.
Results in show rate increasing from $18,010 to $23,520.
Residual Increases
Residual bases increase by 3.5%, each year of the contract, except for reruns innetwork prime time. Residuals for reruns in network prime time increaseby 3%, each year of the contract.
Healthcare
Employers continue to make health care contributions at specially negotiated rateof 8.5%, secured in the 2005 Basic Agreement to address the impact ofthe growing cost of health care on the DGA Plan. Provisions permittingdecrease in contribution rate by employers removed.
Other Provisions
Second Assistant Directors to manage locations in New York and Chicago.
Establishes a wrap supervision allowance of $50/day for the Second Assistant Director who supervises wrap on local and distant locations.
Increases incidental fees and dinner allowances for Unit Production Managers and Assistant Directors.
New Media
Jurisdiction over:
All new media content that is derivative of product already covered under current contracts.
Original content:
All original content above $15,000/minute or $300,000/program or $500,000/series, whichever is lowest.
Original content below the threshold will be covered when a DGA member is employed in the production.
Electronic Sell-Through (Paid Downloads)
More than doubles the rate currently paid by the employers on television programming to .70% above 100,000 units downloaded.
Below 100,000 breakpoint: rate will be paid at the current rates of .30% until worldwide gross receipts reach $1 million and .36% thereafter.
Increases rate paid on feature films by 80% to .65% above 50,000 units downloaded
Below 50,000 breakpoint: rate will be paid at the current rates of .30% untilworldwide gross receipts reach $1 million and .36% thereafter.
Distributor's Gross
Payments for EST will be based on distributor's gross instead of producer's gross, a key point in our negotiations. Distributor's gross is the amount received by the entity responsible for distributing the film or television program on the Internet. We would not have entered the agreement on any other basis.
Companies will be contractually obligated to give us access to their deals and data, enabling us to monitor this provision and prepare for our next negotiation. This access is new and unprecedented.
If the exhibitor or retailer is part of the producer's corporate family, wehave improved provisions for challenging any suspect transactions.
Ad-Supported Streaming:
17-day window (24-day window for series in their first season).
Pays 3% of the residual base, approximately $600 (for network prime time1-hour dramas), for each 26-week period following 17-day window, withinfirst year after initial broadcast.
Pays 2% of distributor's gross for streaming that occurs more than one year after initial broadcast.
Clips
Provides the companies with limited windows where they can distribute clips of feature films and television programs in new media to promotea program. Provides for payment for all other uses in New Media.
Sunset Provision
Allows both sides to revisit new media when the agreement expires.
Of course, whether all this is a great deal or not depends a great deal on the actual language of the contract, which we haven't seen.
