The agreement between the DGA and Alliance of Motion Picture and Television Producers was passed by an 'overwhelming majority'
The Directors Guild of America ratified a three-year collective bargaining agreement, an expected move after the guild's board unanimously recommended the agreement to members. The new contract's term takes effort on July 1.
Formal negotiations with the AMPTP began on Feb. 10 and concluded on March 4. Leading the DGA in the talks were negotiations committee co-chairs Jon Avnet and Todd Holland and the DGA’s chief negotiator, national executive director Russell Hollander. Television creative rights negotiations were chaired by Paris Barclay and co-chaired by Matthew Penn. On March 7, the DGA’s national board of directors unanimously recommended sending the contract to members for ratification.
As previously reported, one-hour programs made for the largest streaming platforms will pay more than $73,000 for the first three years of use starting in the second year of the new agreement, which is up nearly fivefold from 2016 , and according to the union exceeds the average residuals earned from all markets for the most popular network series. Increases for half-hours and for programs on smaller platforms were not disclosed in the summary.
In addition, provisions governing pilots, spinoffs, series without pilots, and series bonuses that apply to traditional television series will be extended to high budget SVOD series for the first time.. As previously reported, minimum salaries will increase by 2.5 percent in the first year of the agreement and by an additional 3 percent in each of the second and third years of the agreement. However, as part of a compromise to obtain the increased SVOD residuals, the wage increases will be 0.
Said the summary, “This should allow the Producers to license series that might not otherwise be exploited, while at the same time ensuring that members will share in the gross revenues received by the producers.
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