Studio musicians who are now entering into negotiations on a new contract with producers are looking for something they`ve never had before: residual payments for programs specifically designed for streaming platforms. Music for streaming series like “House of Cards” (Netflix), “The Handmaid`s Tale” (Hulu) and “The Marvelous Mrs. Maisel” (Amazon Prime) is recorded by union musicians who receive upfront fees but do not receive “back-end” payments like successful film and television projects that find life after death in other media. The latter generate “aftermarket residue” of 1% of the distributor`s gross, which is generally considered to be 20% of actual revenue (meaning musicians earn 1% of that 20%, which amounted to $115 million last year, according to statistics from the Film Musicians Secondary Markets Fund). The musicians` union has the support of the best composers and filmmakers to pursue this goal. John Williams, Quincy Jones, Alan Menken, J.J. Abrams and Damien Chazelle are among those sending letters in support of the residual streaming clause. Rep. Adam Schiff (D-Calif.) also called for “fair compensation and revenue sharing for musicians working on streaming movies and TV shows in a letter to both parties last week [an agreement] that modernizes payment structures to accommodate changing revenue streams.” Randy Newman, a strong advocate for Los Angeles musicians for many years, said: “While studios and producers are formulating new timelines to distribute streaming revenue, they have yet to recognise the fact that musicians are their creative partners and deserve to have at least a small slice of the pie. Of course, musicians are part of the `talent`, but they are not rewarded like singers who record the same music in the same room. The AFM has long enjoyed residual payments for the playback of film music. Musicians currently playing on John Williams` score for “Star Wars IX,” for example, will receive the final payment if that movie is released on DVD and cable. But those who attend the sessions for another “Star Wars” project, “The Mandalorian,” currently in the works for the Disney+ streaming service, won`t.
Things seemed tricky on March 14 when the union called for a strike vote, but cancelled it at the 11th hour when a tentative agreement was reached. The union has been trying for years to win the streaming residue, which it failed to do a year ago in separate negotiations with the Alliance of Motion Picture & Television Producers for a new contract for episodic TV shows for streaming services. Streaming residue, which is a key component of all major guild contracts, was afM`s main focus in last year`s negotiations, as well as in recent negotiations with the three networks. The union`s deal with Disney, the entertainment giant behind the Broadway series Beauty and the Beast and The Lion King, also expired on March 9. Disney never joined the league and broke with tradition by choosing to negotiate independently with the Broadway unions. Dennison told PBOL that Disney was “awaiting the outcome of these talks” before entering into discussions with Local 802. Officials from the American Federation of Musicians (AFM) received support from other SAG-AFTRA show business unions and the Writers Guild of America at a rally attended by about 100 people this morning outside the offices of the Alliance of Motion Picture and Television Producers (AMPTP) in Sherman Oaks, California. Betsy Thomas, a member of the WGA board of directors, also pledged her union`s support.
“Our ideas come to life when instrumentalists integrate their art into music,” she said. “We can`t sit back and watch the studios treat our fellow artists who work on the score scene like second-class citizens.” Nearly $70 billion will be spent this year on streaming content from Disney, NBC Universal, Warner Media, Netflix, Amazon and other providers, AFM President Ray Hair told the crowd, “and the cost of musicians scoring compared to these numbers is microscopic. A similar rally was held this afternoon outside the headquarters of NBC Universal Rockefeller Plaza in Manhattan. Rep. Jerrold Nadler (D-N.Y.), chairman of the House Judiciary Committee, said: “The parties are still far away. But I firmly believe that there is still time for both sides to unite for a just settlement, and I call on all parties to continue negotiating and discussing. Despite the huge success of streaming platforms, production companies like Disney, Warner Media, NBC/Universal and CBS/Viacom pay musicians a fraction of what we get on traditional platforms like movie theaters and networked television. “The Great White Way is safe for musicals for the next half decade. Last week, the Broadway Musicians Union ratified a five-year contract with the League of American Theatres and Producers, the professional organization that represents the majority of theatre producers and owners. The New Pact runs until 2 March 2003. The old four-year contract officially expired on March 9.
The agreement covers all musicians involved in the production of streaming shows, including in-house bands, guest artists, backing musicians, and music preparation staff when their shows are posted on streaming platforms supported by advertisers. The deal also includes what the union called “long-awaited” annual wage increases and additional health and social security contributions from employers. “It`s time to be fair to musicians who work in streaming media,” Hair said. “There will be no social peace with the producers until they reach an agreement with us. Speakers at the rally repeatedly cited the unfairness of musicians` situation, considering that actors, writers, directors and even singers on streaming shows receive arrears – additional payments if their work is repeated for months and years. If the producers refused, it could amount to a wage reduction of “50 to 75%,” said violinist Marc Sazer, president of the AFM Recording Musicians Association. “Two-thirds of our revenue comes from tailings,” he said. The deal ends seven months of negotiations that Bill Dennison, an official with the American Federation of Musicians` Local 802, described as “professional.” Musicians have earned increases that will take them from the current $1,100 to $1,300 per week over the course of the agreement.
Members will also benefit from a 500% increase in instrument maintenance payments from $10 to $50 per week. “We think it`s a good deal,” Dennison said. “It preserves the benefits and staffing needs we deem appropriate.” The president of Sag AFTRA, Gabrielle Carteris, also addressed the musicians gathered. “As an actor and spectator, I recognize the incredible work you do as a musician and what it means for our work, no matter where it can be heard. Your fight is our fight,” she said. We are pleased to have entered into a three-year agreement with the Producers Alliance for Cinema & Television (PACT), which went live on March 1, 2020. AFM President Ray Hair said the new streaming residues for musicians in live TV shows “are a fundamental and structural change to the treaty that would not have been possible without the solidarity, activism, hard work and huge investment of time from all those involved in the negotiations, including the musicians who launched the #RespectUs campaign to highlight the injustices of their contract. I am grateful for the unwavering commitment of the association`s bargaining team to protecting and enhancing the benefits our great musicians receive for their talented contributions to the television industry. Members of the American Federation of Musicians who perform on live television shows have ratified a new three-year contract with ABC, CBS and NBC. The union, which represents about 80,000 musicians, said the new pact included “significant improvements” — including, for the first time, streaming residue for musicians appearing in live TV productions.
Musicians, according to AFM`s Hair, “are the people producers rely on to create an emotional connection with the consumer. We are not truckers. We are not carpenters. We are not stage managers. We are special. The musicians` union could not win the streaming residue – its main purpose in the negotiations of film and television contracts was to provide members with information about the changes made to MusicTeachers.co.uk, the website of the list of music teachers.. .