Commercials

The producer is not obligated to send a notice releasing a performer from the commercial.  If a performer does not receive a holding fee for a new 13-week cycle, the performer has been released from the commercial. 

Holding fees are due (and must be postmarked) no later than the first day of the holding fee cycle.  There are several choices if the holding fee is not paid on time. The performer may ask for late payment damages and accept the holding fee. Or the performer may reject the holding fee payment and consider him/herself released from exclusivity. Or the performer may reject the holding fee payment and renegotiate the terms of his/her contract pertaining to the commercial if the producer wishes to continue to use it.

The “maximum period of use” of a commercial is 21 months (a total of seven 13-week holding fee cycles). Provided the producer continues to make timely holding fee payments, the performer is held exclusive to the product for the 21-month period. If the performer (or his/her representative) does not send a timely renegotiation letter, the producer can extend the maximum period of use for an additional 21 months at the same rates as for the original 21 months. 

A renegotiation letter must be sent 60 to 120 days (two to four months) prior to the end of the maximum period of use.  Check your pay stub to find the end date of the maximum period of use (MPU), and count back 60 to 120 days to establish when you or your agent must send the notice.  The letter should be sent to the producer (ad agency) listed on your employment contract, as well as an electronic copy sent to the Union.  The letter to the producer (ad agency) may be send via e-mail, return receipt requested, to the producer’s (ad agency’s) address identified on the employment contract.  Se

Residual payments must be postmarked within 15 working days from the first use in a 13-week cycle.  However, payment for all Class A uses that occur from Monday through Sunday are due within 15 working days from the following Monday. In the event that payment is not made on time, late payment damages become due. 

This type of use is considered “network broadcast use.” If a commercial is running on interconnected stations (a network) in more than 21 cities, or sponsors a program (“This program is brought to you by …”) it constitutes Class A program use. The cycle begins with the first use date and payments are made on a declining rate formula for each use occurring within a 13-week period. 

Wild Spot is a type of use in which a commercial does not air on interconnected stations and does not sponsor a program.  Time is bought on individual stations in individual markets or cities. Each market/city is assigned a unit value based on the number of television households and the performer is paid for all units of use within a 13-week cycle.

1. Broadcast commercial used on cable networks: 

There are two potential use payments, although they pay different rates.

The difference in rates is based on whether the commercial is made for television and moved over to the Internet, or made specifically for the Internet.  A commercial may be used on the Internet for a 4-week, 8-week, or 1-year cycle.

New Media is defined as digital, electronic, or any other type of delivery platform including, but not limited to, commercials delivered via podcasts, delivery to mobile phones and other digital and electronic media platforms, whether now known or unknown. 

There are two potential use payments, although they pay different rates (and are a separate payment from Internet use).