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Advertising Law Updates

| 1 minute read

Holiday Gifts from SAG-AFTRA and JPC: Low Budget Digital Waiver Extended and New National Cable Waiver Announced

As 2022 winds to a close, SAG-AFTRA and the Joint Policy Committee (JPC) have been busy little elves and have bestowed upon us two gifts for the holidays.

First (see here), the bargaining parties have extended the Low Budget Digital Waiver - everyone's favorite waiver - through March 31, 2023 under its existing terms and conditions. Starting on April 1, 2023 and for the remainder of 2023, the Low Budget Digital Waiver will be modified so it applies to commercials made for "Traditional Digital" use only. Essentially, this updates the waiver to reflect the new 2022 compensation structure which, as of January 1st, will be the only game in town. (See this post.) "Traditional Digital" includes social media, YouTube, brand websites and third party websites but excludes streaming platforms (like Netflix), gaming platforms, virtual worlds, augmented reality and emerging platforms. For a refresher on the requirements that apply to this waiver, see this blog post.

Second (see here), the union has granted to signatory advertisers and signatory advertising agencies (but not to third party signatory co-producers) a waiver that reduces the rates paid for use of commercials on smaller national cable systems. The new rates apply to national cable systems where the aggregate subscriber count is between 1,000,001 and 2,000,000 subscribers for basic service. This waiver is available immediately for all spots produced under the 2022 compensation structure and will remain in effect through March 31, 2025. This means there are now three tiers of rates for cable for signatory advertisers and agencies. The chart below shows the rates for on-camera principal performers.

Happy holidays to everyone!

Tags

sag-aftra, advertising law, commercials, low budget, cable