52-Week All Media Cycle Addition in Commercial Announcements Agreement

July 29, 2015

by Maria Warner-Dowrich, Contract Administrator, AFM Electronic Media Services Division

There’s a new addition to the AFM Commercial Announcements Agreement. At the end of negotiations of the Commercial Announcements Agreement, June 5, 2014, the American Federation of Musicians and the Joint Policy Committee (JPC) agreed to add a new 52-week cycle in the all media initial use cycle and re-use cycle.

Under the new contract, with effective dates June 5, 2014 through June 4, 2017, the advertiser has the option to choose the 52-week cycle in all mediums and is not locked into any one or “sole” medium in any one cycle. These mediums include, but are not limited to television, radio, Internet, nonbroadcast, and foreign use.

Should the money savvy advertiser elect to choose the new all-media 52-week initial use cycle, they will save both monetarily and in terms of paperwork. But the main advantage of choosing this option is, the ability to use the AFM agreement as opposed to using the licensing agreement, and in so doing, the musicians immediately receive large pension and health and welfare contributions. The agreement will also provide a substantial upfront pay scale for musicians.

The all media payments are in addition to the appropriate minimum session fee payments (e.g., the one-hour session rate is $127.20 per side musician, etc.) The rates due arrangers, orchestrators, and copyists may be found in the music preparation section of the Commercial Announcements Agreement. Also applicable to session fee payments are: 16.5% pension fund contribution and $26, plus 6% health and welfare fund contribution. If the 52-week all media cycle is exercised, the additional payments (beyond the session fees) per spot, are $1,245 per side musician and copyist, with double scale for leader, contractor, arranger, and orchestrator, plus 16.5% pension and 6% health and welfare contributions.

If the advertiser elects a second 52-week all media cycle that payment is $933.75 per side musician and copyist, with double scale for leader, contractor arranger, and orchestrator, plus 16.5% pension and 6% health and welfare contributions. It’s the perfect fit for the busy advertiser looking to present a product in all media.

The attractive attribute of the new addition is flexibility to pick and choose, and mix and match the varied mediums covered under the Commercial Announcement Agreement for the applicable 52-week-cycle (one full year), and not three 13-week re-use cycles or 39 weeks in one medium, as provided in the previous agreement that was effective 2009-2012 and extended.

The new 52-week all media cycle agreement is thoroughly a win, win for all. But, it’s your call and we are here to assist!

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