What significant financial changes are proposed in the new Commercials Contracts? How will performer compensation be affected over the next three years? What are the new rules regarding the use of performers’ data and digital replicas? What protections does the agreement put in place for minor performers? How does the increase in streaming use fees reflect changes in the advertising industry?
SAG-AFTRA’s National Board overwhelmingly approved 2025’s Commercials Contracts tentative agreements reached with the Joint Policy Committee April 12, meaning the agreements will now move on to the membership for ratification.
The decision, made at the regularly scheduled two-day in-person assembly, yielded a deal valued at an increase of $218.4 million in new earnings and benefit plan contributions over three years. If ratified, the agreements would provide compounded increases in performer compensation at a rate of 5% in year one, 4% in year two, and 3% in year three.
With the board recommending a vote of “yes,” one-year streaming use fees would increase by up to 33.33% to keep stride with the transforming advertising industry; additionally, paid YouTube.com use now commands a 12% increase over the current Traditional Digital rates—a restructuring that reflects its rise as a premium platform.
“A huge congratulations goes out to the Commercials Contracts negotiating committee for their diligent work in this agreement, which is an important step forward for protecting the stability of performers’ livelihoods during this time of major technological upheavals in the ad industry,” SAG-AFTRA president Fran Drescher said in a statement. “The Committee was co-chaired by Katie Von Till and Erin Fritch, who led with strength, wisdom, intellect, and patience. Brava, ladies! The Commercials Contracts are a real powerhouse when it comes to addressing tech with more A.I. protections than any contract so far! Well done!”
SAG-AFTRA National Executive Director & Chief Negotiator Duncan Crabtree-Ireland added, “This deal, hard-won thanks to an incredibly dedicated negotiating committee, achieves real wage growth and puts rules and a price tag on digital replica use—essential progress for a changing industry. I’m thrilled the National Board has approved this forward-thinking agreement and that members will now have a chance to review its many gains. I also want to extend my deepest appreciation to our extraordinary and courageous negotiating committee, especially co-chairs Erin Fritch and Katie Von Till, and the best co-lead negotiator anyone could ask for, SAG-AFTRA Chief Contracts Officer Ray Rodriguez.”
Other highlights from the deal include the following: performers’ data can’t be used to train artificial intelligence without consent; performer consent is required before any digital replica is created; the use of a digital replica to generate a performance requires informed consent and triggers a 1.5x session fee plus applicable holding and use fees; provisions that ensure a level playing field in generative AI and remove economic advantages to the use of synthetic performers; the total pension and health contribution rate is raised from 20.5% to 23.5%, subject to a waiver reduction for JPC authorizers to 19.95%; an initiative to develop an automated commercial use monitoring service; creation of a new extra zone and preference of employment for Austin, Texas; disability accommodation(s) must be offered, in writing, at the time of engagement; dramatic improvements in protections for minor performers; late fee penalties have been strengthened and streamlined; per diems are required to be paid on the first day of work and/or travel; dancers who are asked to lip-synch now earn an extra 25% of session; singer wage increases for non-air demos; and a brand new digital structure in the Audio Commercials Contract.
Eligible SAG-AFTRA members will have until 5 p.m. PDT on May 21 to cast their vote on ratification.
SAG-AFTRA National Board Approves Major Commercials Contracts Deal
In a significant move that has the potential to reshape the landscape of commercial acting, the SAG-AFTRA (Screen Actors Guild-American Federation of Television and Radio Artists) National Board has approved a new commercial contracts deal. This milestone decision, occurring amidst a climate of rapidly evolving media consumption and heightened focus on equitable compensation, marks a pivotal moment for union members and the wider entertainment industry.
The Context of the Agreement
The approval of the commercials contracts deal comes on the heels of considerable negotiation efforts between SAG-AFTRA representatives and major advertising agencies. In recent years, the fear of losing representation and fair pay has been a growing concern among actors, particularly as the industry increasingly shifts towards raw digital content and global advertising opportunities. As companies seek to minimize costs by utilizing non-union labor, SAG-AFTRA negotiators have aimed to ensure that their members are not left behind in this changing landscape.
The deal is rooted in reinforcing the union’s commitment to fair wages, safety regulations, and overall member welfare. The increasing prevalence of “influencers” and non-traditional advertising channels posed a real threat to actors in commercials, necessitating safeguards to maintain a level playing field for those who rely on commercial work as a primary income source.
Key Elements of the Deal
Increased Minimum Pay Rates:
One of the most significant aspects of the new contract is the increase in minimum pay rates for commercial actors. This provision aims to combat the historical undervaluation of talent in commercial work. The newly stipulated pay rates reflect the rising cost of living and rising market standards, ensuring that actors are compensated more fairly for their performances.Health and Safety Provisions:
As the industry adapts to post-pandemic norms, health and safety continue to be a primary concern. The deal includes robust health and safety provisions, establishing guidelines that production companies must adhere to in order to protect actors on set. These rules are particularly important for commercial shoots that may occur in unconventional spaces, where adherence to safety protocols can sometimes lag.Digital Performances and New Media:
Acknowledging the rapid growth of digital platforms and online advertising, the new contract includes provisions that specifically address digital performances. Actors performing in online commercials will see enhanced protections and rights relating to the usage of their work, ensuring they have a say in how their image and performance are utilized. This inclusion helps to safeguard against the misuse of footage and offers actors more control over their digital footprints.Usage Definitions:
Another crucial component of the agreement is the delineation of usage rights. With many commercials advertised across multiple platforms, the guidelines around how long and where an actor’s performance can be shown have been clarified to ensure fair compensation for extended usage.- Anti-Discrimination Clauses:
With a heightened focus on diversity and inclusion in the entertainment industry, the deal includes strong anti-discrimination clauses. These provisions ensure that casting practices remain fair and equitable, actively promoting diversity within commercials. This move aligns with broader industry efforts to foster an inclusive environment and can lead to a richer representation of society in advertising.
Impacts on Actors and the Industry
The approval of the commercials contracts deal has broad implications for actors at all stages of their careers. For seasoned professionals, the increased pay rates provide a much-deserved acknowledgment of their contributions to the industry, validating years of hard work. For emerging talent, the new safety regulations and usage rights can foster a more secure and predictable working environment as they build their careers.
Furthermore, the deal reflects an evolving industry that recognizes the importance of adapting to the changing nature of media consumption. As traditional broadcast commercials face competition from online content, establishing a framework that supports union actors helps to ensure that their talents are valued in this new era.
Conclusion
The SAG-AFTRA National Board’s approval of the new commercials contracts deal is more than just a negotiation win; it signals a commitment to the future of the entertainment industry. By addressing the diverse and pressing needs of its members—from increased pay to safety and diversity—the union demonstrates its dedication to protecting actors in an increasingly complex marketplace.
As media continues to evolve, the importance of union representation remains paramount. This deal not only strengthens the position of actors within the advertising landscape but also sends a message to production companies: that fair treatment and equitable pay for actors are non-negotiable. As the deal is implemented, all eyes will be on its impact, setting the tone for future negotiations in the evolving world of commercial production.
The SAG-AFTRA National Board has approved a new deal regarding commercials contracts, which addresses various issues important to union members. Key points include updated wages, improved working conditions, and enhanced protections for performers. This deal is seen as a significant step in advocating for the rights and fair treatment of artists in the commercial sector. It reflects the union’s commitment to ensuring that all members receive equitable compensation while also adapting to the evolving landscape of the entertainment industry. The ratification process will now move forward, allowing members to officially vote on the agreement.