The SAG-AFTRA 2016 Commercials Contracts
Simultaneous Streaming of Commercials on the Internet and/or New Media
New language: All compensation paid to performers for covered services hereunder grants Producer the right to simultaneously stream or otherwise transmit commercials on the Internet and/or New Media. The foregoing applies to simultaneous streaming, simultaneous cellular transmission and any other means of simultaneous transmission that currently exists or may hereafter be developed. This provision will sunset on March 31, 2019.
What this means: If a commercial is shown during a show/program airing on television and that show/program (with the commercial) simultaneously streams on the Internet and/or New Media, performers will not receive an additional Internet and/or New Media payment. The television use payment, whether Class A, Wild Spot, or Cable, covers the Internet/New Media use.
This language is also applicable to audio commercials broadcast on terrestrial radio during a radio program. If the radio program is streamed simultaneously on the Internet and/or New Media, no additional payment is due to the performer.
On November 14th, at 8pm, I am sitting in front of my TV watching Dancing with the Stars on ABC. A commercial for Wrigley’s gum airs during the show. The performers are compensated for one Class A use.
SIMULTANEOUS STREAMING -
At the same time that I am watching on my TV, my friend is sitting in a coffee shop on the corner streaming Dancing with the Stars on her phone via the Time Warner TWC app. The entire show, including the Wrigley’s commercial, streams over her phone at the exact same time (simultaneously – November 14th at 8pm) as I see it on my TV. As the performers have been compensated for this use as part of the Class A buy, the performers will not be entitled to a New Media payment for this simultaneously streamed commercial.
NOT CONSIDERED SIMULTANEOUS STREAMING –
On December 2nd, ABC decides to re-air the November 14th episode of Dancing with the Stars. A commercial for Wrigley’s gum airs during this television broadcast and performers are paid 1 Class A use. My friend, who spends too much time at the coffee shop, streams the show on her Time Warner app several hours after it airs on television. She also sees the Wrigley’s commercial while streaming the show. This is not simultaneous streaming. The Class A use payments would not cover the New Media use and performers would be entitled to a New Media payment.
It is 1am on December 12th, I can’t sleep but I remember that the Dancing with the Stars episode from November 14th was really good. I stream it on Hulu.com on my laptop. The Wrigley’s commercial is shown again. Performers would receive an Internet payment for this use.
Please do not hesitate to contact the Commercials Department at 323-549-6858 in Los Angeles or 212-827-1454 in New York if you have any questions.