SAG-AFTRA has reached a historic agreement with Netflix — the first time the union has signed directly with a global streaming service. Under the agreement, members can expect increases to residuals for higher-budgeted motion pictures that were produced under a SAG-AFTRA theatrical contract that are exhibited on Netflix, recognition of performance capture as covered work, and much more.
The three-year agreement grew out of an informal dialogue with Netflix about the possibility of a direct relationship that went back several months and was reported on to members during the recent TV/Theatrical wages and working conditions process. As Netflix increased its production to unprecedented levels, it became apparent that the union needed to explore different processes to handle the volume. That discussion dovetailed with the ongoing conversation about the possibility of a direct deal. When it became apparent during one such set of meetings that Netflix was prepared to offer significant progress on union priorities in order to address certain concerns and put a deal into place quickly, the discussions shifted and were used to explore what could be achieved for members in a Netflix agreement. The result of that discussion was immediately presented to the TV/Theatrical Standing Committee.
The agreement, which is based upon the Codified Basic Agreement and Television Agreements, was overwhelmingly approved by the National Board at its one-day videoconference plenary July 20. The contract runs through June 30, 2022.
“We are pleased that we were able to work with SAG-AFTRA to address these issues unique to Netflix’s production needs and we commend SAG-AFTRA leadership for its creative approach,” said Netflix Chief Content Officer Ted Sarandos.
SAG-AFTRA National Executive Director David White also hailed the agreement.
“As Netflix continues to ramp up its series and feature film production, it can do so more efficiently under this bilateral agreement, which provides enhanced terms and protections for all our members,” White said.
Gains achieved include minimum salary and turnaround provisions for lower budget productions that do not normally benefit from scale minimums and other basic terms when they are made for a streaming platform. Other gains include residuals for theatrical productions, stunt performance overtime, and coverage of foreign-language live-action and animated motion pictures dubbed into English in the United States. The last item could be a particular area of growth and opportunity for members.
The New York Times reported recently that Netflix is in the process of ramping up its dubbing department. “Over the past nine months, it has been actively recruiting actors and filmmakers to build a production chain it hopes will drastically elevate the quality of its English-language versions of foreign shows, making them seamless enough to win over more American subscribers and, in the process, significantly boost viewing of Netflix’s international offerings,” the Times reported.
In addition, the deal includes the harassment protections contained in the Network Code agreement and Commercials Contracts, plus a ban on auditions in private residences and hotel rooms.
Lastly, the contract also includes a provision that Netflix will make its best effort to include the union’s logo in Netflix-produced shows. While Netflix produced under the same SAG-AFTRA contracts as Alliance of Motion Picture and Television Producers companies, it had never been a direct signatory for higher-budgeted motion pictures that were produced under a SAG-AFTRA theatrical contract that are exhibited on Netflix, recognition of performance capture as covered work, and much more.
This story was originally featured in the summer 2019 issue of SAG-AFTRA magazine.