What are Upfront Use Packages in the 2019 Commercials Contracts?

Advertising has come a long way. Technology, innovation, and 24/7 media platforms have disrupted the traditional advertising model that our commercials contract was built on. An evolving industry required a new approach to compensation that is simple, flexible, and predictable. Together with member insight and industry input, we developed three upfront use packages to complement the traditional elements of the contract. Option one: Upfront Plus. For an upfront $20,000 payment plus a session fee, advertisers can use the spot on all media for one year. This includes 10 Class A uses. After that, members get $100 per additional Class A use. Option two: Upfront Flex. This model has an upfront $8,000 payment plus a session fee for one year of use. As advertisers place their media, they credit flat fees and Class A use payments against the $8,000 until that amount is exhausted, after which members are paid for each type of continued use. There are flat fees for five different categories purchased in 13-week cycles. Class A is $100 per use. Lets say an advertiser airs an ad on local broadcast and cable, and then extends the run for two more 13-week cycles. In this example, the flat fees total $6,000, but the performer retains the upfront payment of $8,000. In another example, the advertiser runs an ad on national cable, then extends the run for one more 13-week cycle, and adds digital and 12 Class A uses. In this scenario, the buy exceeds the $8,000 upfront payment and the performer is paid an additional fee of $1,300. Option three: Upfront Digital. Internet and new media payments are now combined. For one year the advertiser can use this spot on the internet, OTT, and new media for $3,825 plus a session fee. There is no exclusivity, so if an advertiser wants to move the spot to television, they need the performer’s consent. Keep in mind, with all three upfront use packages, there is no crediting of session fees, and the maximum period of use is one year. Remember, the traditional elements of our contract remain an option for those advertisers who know and love that contract, and now we have three simple, flexible, and predictable payment options available as well. These upfront packages will be available for use starting June 1, 2019. SAG-AFTRA and its bargaining partners heard the call for change. We worked together to create these innovative payment models to benefit both the advertising industry and its union performers. If you have questions about the new contract, visit sagaftra.org/commercials2019.

2 thoughts on “What are Upfront Use Packages in the 2019 Commercials Contracts?

  1. This is eliminating residuals!!! They're giving away your livlihood to producers. VOTE NO!!!

  2. I miss the good ol days where u can make 50K on a national. SMH I should've voted no

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