AFM and Advertising Industry Reach Three-Year Deal

July 2, 2014

Representatives of the AFM, the Association of National Advertisers (ANA), and the American Association of Advertising Agencies’ (4A’s) Joint Policy Committee on Broadcast Talent Union Relations (JPC) announced today that a successor agreement has been reached covering the services of professional musicians who record music tracks in the production of television, radio, and Internet commercial announcements. The parties began negotiating in February to modify the previous 2009 contract.

This new Jingles and Spot Announcements Agreement will run three years and provide for an upfront 6% increase in wages applicable for recording sessions and re-use payments. The contract also provides needed improvements to health and welfare payments, cartage payments, sideline services, Internet wages, and pension contributions.

In addition, the parties agreed on the addition of innovative provisions, such as a waiver for certain types of Internet productions, and a structural feature that permits advertisers to pay an upfront fee for 52-week initial soundtrack use and re-use cycles covering all media.

“We have concluded an exceptional and progressive agreement with the advertising industry that we believe achieves our goals, both economically and structurally,” says AFM International President Ray Hair.

“These negotiations have been a positive and productive step towards a partnership with commercial musicians and the AFM. I look forward to the ratification by their membership,” says Joint Policy Committee Lead Negotiator Stacy K. Marcus. 

The agreement will be submitted for ratification to AFM rank-and-file musicians, a process that is expected to conclude in 60 days. While all terms and conditions of the new contract are effective immediately, the industry will have 60 days following ratification to implement the new terms.