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iW NEWS | DGA and AMPTP Reach Tentative Agreement on Terms of New Contract

iW NEWS | DGA and AMPTP Reach Tentative Agreement on Terms of New Contract

The Directors Guild of America has announced that talks with the Alliance of Motion Picture and Television Producers have concluded and that a tentative new 3-year collective bargaining agreement has been reached. Highlights of this agreement include: An increase in both wages and residual bases for each year of the contract; An establishment of DGA jurisdiction over programs produced for distribution on the Internet; An establishment of a new residuals formula for paid Internet downloads that essentially doubles the current rate; And an establishment of residual rates for ad-supporting streaming on the Internet. “Two words describe this agreement – groundbreaking and substantial,” said Gil Cates, chair of the DGA’s Negotiations Committee in a statement. “The gains in this contract for directors and their teams are extraordinary – and there are no rollbacks of any kind.” Negotiations between the DGA’s 50-member Negotiations Committee and the AMPTP began Saturday, January 12, and were concluded today. “This was a very difficult negotiation that required real give and take on both sides,” said DGA president Michael Apted. “Nonetheless, we managed to produce an agreement that enshrines the two fundamental principles we regard as absolutely crucial to any employment and compensation agreement in this digital age: First, jurisdiction is essential. Without secure jurisdiction over new-media production – both derivative and original – compensation formulas are meaningless. Second, the Internet is not free. We must receive fair compensation for the use and reuse of our work on the Internet, whether it was originally created for other media platforms or expressly for online distribution.” For more specifics of the agreement, check out the DGA’s negotiation “fact sheet”. Specifics regarding the new agreement will be submitted to the Guild’s National Board for approval on Saturday, January 26, 2008. The DGA’s current contracts expire on June 30, 2008. [Peter Knegt]

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