DGA Cuts Deal With AMPTP

Posted on January 17, 2008

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. The DGA released a fact sheet. Here are the details on the wage increases and residual increases:
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.
  • Here are some of the details covering new media, downloads and ad-supported content:
    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.

    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.
    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.