Fair Share for Musicians: Film and Television Agreement Wins Explained

September 1, 2024

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by Rebecca Gurnee, AFM Electronic Media Services Division Assistant Director

In January and February 2024, the AFM made significant strides in negotiations with the Alliance of Motion Picture and Television Producers (AMPTP), resulting in a new set of Basic Theatrical and Basic Television Motion Picture agreements. These negotiations, culminating in an agreement on February 23, achieved important advancements, particularly in streaming residuals and protections against artificial intelligence (AI) in music production.

Following are some of the key wins from those negotiations.

Primary Market Streaming Residuals—One of the most critical gains during these negotiations was the establishment of a primary market residual for high-budget subscription-based video on-demand (SVOD) programs. This was a crucial victory, given the increasing prominence of streaming platforms in the entertainment industry. The AFM secured a structure that ensures musicians are fairly compensated for their contributions to these productions. While the residual base calculation was a point of contention, a compromise was reached that lays a strong foundation for future negotiations.

Ultimately, the residual base is calculated as follows: when a covered musician performs covered work under the agreements for a high-budget SVOD program, a base amount of $350 is added to the pool, which is first calculated by episode for an episodic series, or as a singular pool for a one-off, feature-length film or pilot. This base amount is identical for all covered services under the agreements. For episodic television, subsequent sessions for different episodes would add to that episode’s pool and all the episode pools are aggregated at the end of a season. A musician cannot generate payment into multiple pools from the same session and cannot generate payment into the same pool twice. The pool is also subject to a bargained cap based on the length of the program. These are all issues that we will examine during the term of the agreements and readdress in bargaining during the next cycle.

To ensure a fair payout of the pool, since every classification of work only generates $350 into the pool, the distribution is neither pro rata, nor per capita, but provides one unit for most working classifications and two units for contractors, orchestrators, arrangers, and electronic multi-tracking musicians. Leaders were excepted, as it was determined that rotation of the leader premium across sessions could be used to manipulate the distribution. Additionally, the Federation achieved a performance-metric bonus, which provides an additional 50% increase in residuals for well-performing SVOD programs.

Artificial Intelligence Protections—Another major focus of the negotiations was the protection of musicians’ rights in the face of advancing AI technology. The AFM successfully secured language in the agreements that ensures AI cannot be used to replace musicians or meet scoring obligations. This is particularly important as the use of AI in creative industries becomes more widespread. The new provisions require that any generative AI music must include appropriate compensation for the original musicians whose work was used as a prompt. Additionally, protections were put in place to prevent the unauthorized use of a musician’s digital likeness, ensuring that consent and compensation are mandatory.

Other Notable Achievements—The negotiations also included several other important provisions that were agreed upon after extensive bargaining:

Wage increases: Over the three-year term of the agreements, musicians will see a compounded wage increase of just over 13%, with annual raises of 5%, 4%, and 3.5%, respectively.

Industry initiatives: The AFM agreed to some of the AMPTP’s proposals, such as expanding the “banking and exchange” system into the Television Agreement and permitting the use of up to three minutes of score in other projects under the clip formulas, with new limitations and increased rates.

Force majeure provisions: Language was added to the agreements to cover the cancellation of scoring sessions due to force majeure events, ensuring that musicians are compensated one-half check, with a couple of exceptions.

Cultural instrumentation: The Federation agreed to allow the scoring of certain culturally significant instrumentation abroad, provided it meets specific wage and benefit requirements and is approved by the Federation. Such work is still filed and covered under the agreement, as if it were scored domestically.

Challenges and Compromises—Not every proposal by the AMPTP was accepted. The AFM stood firm on several issues, rejecting proposals that would have allowed for a buyout option on foreign pictures or expanded low-fee licensing provisions. The AMPTP also sought to remove leader premium payments for solo remote recording sessions, but this was strongly opposed by the Federation.

Conclusion

We would not have achieved what we were able to gain in these agreements without the efforts of the Negotiating, Steering, and Artificial Intelligence committees.

These successful negotiations in early 2024 represent a significant victory for musicians. By securing important gains in streaming residuals and guardrails for use of AI, the AFM ensured that musicians are better positioned in the rapidly evolving landscape of film and television production. The new agreements reflect a balance between the industry’s demands and the rights of musicians, laying the groundwork for continued progress in future bargaining sessions.

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