The Official Bulletin: 2016 Q4 / NO. 654

Not So New Media – Where
Have We Been And Where
Are We Going?
P
roductions made for online viewing continue to create significant job opportunities for
IATSE members across North America. Netflix alone licensed or produced $6 billion
worth of content in the past year.
One of the biggest gains in the last
round of bargaining for the Basic and
Area Standards Agreement involved improvements
negotiated into the New
Media Sideletters. High budget subscription
video on demand (think Netflix,
Amazon Prime, Hulu) projects are now
produced in line with similar network or
basic cable productions.
With few exception, only companies
signed directly through the AMPTP
have access to the New Media Sideletters.
Term signatories that sign through the
IATSE do not have access to these Sideletters,
so those contracts are negotiated
based on budget and have full terms and
conditions.
Nowadays, the companies signed
directly to the Basic are more active in
the realm of new media, primarily producing
high budget shows such as Netflix’s
“Luke Cage” and “Stranger Things.”
These productions fall under the provisions
of the New Media Sideletters’ High
Budget SVOD tiers.
We have also negotiated hundreds
of single production new media contracts,
for a vast array of programming.
The ½-hour and 1-hour formula is
expanding to include mini-episodics,
branded short form storytelling, and
content made to be viewed only on a
specific product, such as a brand of
phone. We carefully analyze the number
of days of production, type and style of
production, and budget per minute and
episode to maintain an industry standard.
Our one-offs, such as the contract
for Netflix’s “Sense 8”, contain stronger
weekend and daily turnaround, more
expensive meal penalties, as well as
other enhancements.
The type of SVOD content is also
expanding. At first, all series for Netflix,
HULU and Amazon Prime were highbudget
episodic shows, such as “House
of Cards” and “Jessica Jones.” Netflix now
has an original reality competition show,
“Ultimate Beastmaster,” and multi-camera
sitcoms such as “The Ranch.” Both
shows are under contract with full wages,
benefits, terms and conditions. Combined
with the trend of television networks
hesitant to cancel series to avoid
them transitioning to an online competitor,
or partnering with an SVOD channel
to continue production of a show, as
seen with “The Mindy Project,” we begin
to see why employment in motion picture
and television production is at an
all-time high.
Entire seasons are now released at
once and are “binge watched” by millions
of subscribers. In 2016, the production
of over 400 scripted series
has created a peak of TV production.
Moreover, people are watching more
media, as digital devices provide added
venues for viewing. In 2016, US adults
spent one extra hour a day with media
compared to 2015, an increase of 10%.
This trend means healthy pension and
health plans, and more work for our
members.
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FOURTH QUARTER 2016 45