After just five days of negotiation, the Directors Guild of America has reached a deal with the Alliance of Motion Picture and Television Producers. Terms of the deal include:
• Increases both wages and residual bases for each year of the contract.
• Establishes DGA jurisdiction over programs produced for distribution on the Internet.
• Establishes new residuals formula for paid Internet downloads (electronic sell-through) that essentially doubles the rate currently paid by employers.
• Establishes residual rates for ad-supported streaming and use of clips on the Internet.
“Our industry’s creative talent will now participate financially in every emerging area of new media. The agreement demonstrates beyond any doubt that our industry’s producers are willing and able to work with the creators of entertainment content to establish fair and flexible rules for this fast-changing marketplace,” the studios said in a statement.
The WGA commented, “They have chosen to negotiate with the DGA instead. Now that those negotiations are completed, the AMPTP must return to the process of bargaining with the WGA. We hope that the DGA’s tentative agreement will be a step forward in our effort to negotiate an agreement that is in the best interests of all writers.”