Pilot and TV Series Agreements

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Biletsky Law - Television Pilot OptionBeing given an opportunity to be an actor on a television series can be an exciting stage in an actor’s career. While the level of excitement will vary depending on the role that you are given, and the show that you are being cast on, there still is an air of excitement regardless of the project.

But what happens to this excitement if this is a show that you’ve never heard of, or even more so if it is a show that has never been aired? *Cut to close-up*, congratulations, you’ve been cast on a pilot!

For (almost) every television show, there is a pilot. A pilot is the developer or producer’s way to show the world what the new show will be about and who will be the regulars on the show. Although the world of television is changing due to new technologies and platforms such as Netflix, Hulu, and Amazon, the basic premise of a pilot still exists.

So what happens if you land a role on a pilot? Well, it is first important to understand what you’re starring in. The number of shows that are pitched to different networks and companies each season can be nearly unimaginable. People and companies from around the world spend months (or at least they should spend months) preparing pitches and sizzle reels all in the hopes of being picked up by a network or production company. Those few concepts which do make it through the heart aching process of selection are then given the opportunity to put everything they have on the line and to create a pilot for the networks and/or public to view.

Somewhere between the pitch, the sizzle, and the pilot, there comes a time where the developers need to attach talent in order to increase the value of the production. Herein comes the “Pilot Services Option.” This option essentially attaches you as talent for the production in the event that the idea gets the thumbs up and a pilot (and hopefully the rest of the season) is produced.

The Pilot

At this point, the developers don’t even know if the pilot is to be produced, but they want to have the option to attach you as talent in the event that it is. This option will set out the basic terms such as the length of the option, the compensation that is to be paid to you, the credit that you are to be afforded, and other provisions such as merchandising.

Once they have you secured as talent on the option, they need to go one step further and also secure you for the series, if it is to be produced. After all, a pilot which is successful would need to retain its original cast to keep the chemistry that was displayed in the pilot.

The Series

The series will also likely be in the form of an option since at this point, the developers are usually unable to commit to whether the series will also be developed. The series options will secure your place as an actor for one firm contract year, usually with as many as six annual options thereafter (coming soon, an article about the limitations of Personal Services Agreements). This section of the agreement will also lay out common terms such as compensation, credit, and other provisions related to the projects exploitation of your image.

Compensation

Generally speaking, your compensation depends largely on one thing: union or non-union. Union productions are governed by the terms of the union’s collective bargaining agreement and include certain minimums that union members must be paid. In the motion picture and television industries, it’s most likely going to be the Screen Actors Guild (SAG) whose minimums you must be paid, if you are a member.

Beyond whether you are union or non-union, other factors such as who you are as an actor, what kind of role you will be playing, and what kind of production you are being featured in will have an impact on your compensation as well. For actors who are more established, compensation will also be based on prior rates that you’ve received.

For an actor, prior rates received is an important part of the gig because in many instances your compensation will be based on what you were paid before. There are of course other facts that go into basing your new compensation off of your old pay in that it depends; what kind of role you played, what kind of production the project was, and how old the rate is. You can see why these factors matter as basing compensation for a lead actor in an action series based on an actor’s 6 year old rate for a drama where the actor played a minor role will not be an accurate portrayal of the actor’s worth.

Pay or Play

Another important aspect of compensation is whether you are “pay or play.” As it sounds, “pay or play” requires that the actor be paid regardless of whether the actor’s services are ever actually used. An actor who is given a pay or play clause is in a good position as regardless of the development of the project, the actor is being compensated. Due to the risk that projects never make it, producers are hesitant to grant pay or play unless the actor is a key component of the production. For larger, well-known actors, they will almost always be pay or play as it would not be worth the actor’s time commitment if they were not guaranteed compensation.

And so on…

There are many other provisions that go into these agreements, the more important of them being what happens in case you breach the agreement and if they are deemed to have breached the agreement. Typically, if you breach the agreement, you’re probably not going to be working on the project and may be liable for certain consequences resulting from your breach. On their side, you will not be able to stop the production or have any kind of equitable remedies in the event they breach. That’s just how the business goes.

For more information on television actor agreements, or for assistance with your television acting career, contact Biletsky Law.

The Talent Agency Act and You

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Biletsky Law - TAA“Procure employment.” These two words are something every artist and manager (and possibly others acting on behalf of an artist) should be aware of. In 1978 the Talent Agency Act was passed in California which required that any person acting as an artist’s agent be licensed. Most importantly, these laws broadly defined those who act as agents as those who “procure employment” for another. Also important is the repercussions for those who violate the Talent Agency Act (TAA).

One of the most famous of these cases is the 1996 case of the musical band the Deftones versus their former manager, Dave Park. Dave Park had sued the Deftones for failure to pay earned commissions. In return, the Deftones filed a complaint with the California Labor Commissioner regarding Park’s violation of the TAA. The Labor Commissioner’s investigation found that Park had violated the TAA on 84 occassions by procuring employment without a license. The result? All commissions earned by Park in relation to the Deftones was disgorged and returned to the Deftones and all management agreements were cancelled.

This hasn’t been the only instance where the TAA has caused headaches for managers though. Matthew Katz, the former manager of Jefferson Airplane, forfeited more than $12,000,000 resulting from his violation of the TAA. Other sizeable cases can be found in almost every corner of the entertainment industry from music, to movies, to theatre.

From the above examples, you would think that managers across the board would be inclined to attempt to keep their distances from any kind of activity that could potentially violate the TAA. But, that’s not necessarily the case. The roles of managers between industries are very much the same, yet vastly different, depending on the industry.

In the motion picture and television industry, the role of a manger is more confined to that of how the role of the manager is defined. The manager will look after the day-to-day operations, ensure that all of the projects are lined up and running smoothly, and make sure that all of the jobs that the agent had obtained for you are on your calendar and ready to go.

In the music industry, the role of the manager can sometimes be a bit more blurred. Your manager will do similar tasks such as ensuring that your recording projects are lined up and going smoothly, but from time to time, a manager may be able to book you a gig or an appearance. Although this seems to be within the normal realm of a manager’s duties, you can see why “procuring employment” could be as simple as booking a gig for your client or arranging an appearance where the client gets paid (autograph signing, product sponsorship, etc.).

So, after all the problems that the TAA can cause a manager, you may be asking yourself, why don’t these managers just obtain a Talent Agency license to make it so that they don’t have to deal with these sort of problems? In many instances, companies may offer both managerial and agency services and may be equipped with the necessary licenses. But for the most part, it is usually a pretty good bet that your manager does not also simultaneously have their agency license.

California has enacting somewhat strict guidelines and regulations for agents to be licensed. Although not prohibitively expensive or complex, the process is somewhat costly and lengthy enough to deter your average manager from also pursuing an agency license without having a legitimate agency business to run.

So where does this leave you? Well, if you are on the talent side, you can rest assured knowing that the law is usually on your side when it comes to keeping your team compliant with the law. On the management side, you need to walk a thin line in providing your services to your client to ensure that you do not run afoul of the TAA.

For more information on the Talent Agent Act or for assistance in a matter related to the TAA, contact Biletsky Law.

Music Synchronization

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Biletsky Law - Music SyncMusic that is featured in your favorite television show, motion picture, or even commercial can create a unique connection between you and the production. In many instances, you may identify the production through the song or visa-versa. The fact that such a connection can be created just by synchronizing a song with a particular production makes certain songs that much more valuable to a production.

And herein lies the synchronization license. A synchronization license is an agreement that allows the creator or producer of a type of visual media to use a particular song, or part of a song, in synchronization with a visual media project, or in the form of advertising for the visual project.

If you are either the creator or owner of a song or a visual production, there are several factors that you need to consider:

The Length of Use

The cost of a synchronization license will depend upon the length of the song and whether the entire song is being used or just a few seconds of a song. The length that the song is being featured in the visual production will largely dictate what kind of influence the song will have. Having a song featured in its entirety will often leave a bigger association between the song and the visual production.

In some instances, where an entire song is to be featured in a visual production, a hybrid license is used where the producer of the visual media pays for the entire cost of a song for the privilege of being the first to use the song. After the song’s use, the ownership of the song will then go back to the owner of the song.

Where is the Song being Used?

Another issue to be considerate of is where the song is being used. The impression that a song gives when being featured in the opening or closing scenes is substantailly different from the situational impression that a song being used only in a specific scene gives. Since music that is being featured in the opening and closing scene of a television show or movie commands such an important role, there are premiums that must be paid for obtaining permission to use the song in such a position.

On the other hand, music that is being used for small durations will vary in cost depending on the actual length of the use and the type of use. For the use of a song in certain controversial or explicit scenes, there may need some negotiation to use more popular songs in such a scene.

The Type of Synchronization

In addition to where the song is being used and how long of the song is being used, another pivital concern is the type of use. Type of use generally refers to how the song is going to be used in the production.

Background Instrumental
Generally, instrumental music is cheaper to license than music that has a singing component to it. With a background instrumental sync, the viewers cannot see where the music is being played from and only the viewers, not the characters, can hear the music.

Background Vocal

Slightly more expensive than background instrumental is background vocal. This type of synchronization is where there are words being sang, but you cannot see where someone is singing. This is music that only the viewers can hear but the characters in the movie cannot.

Source

More expensive than background sync is a source synchronization where again, you can hear the singing, but you cannot see the the singer. However with this type of synch, the characters in the movie can hear the song. This plays a different role in the production since the characters are able to interact with the music.

Visual Instrumental

In contrast to the types of synchronization mentioned above are visual synchs. Visual instrumental is a type of synchronization where the viewer can hear the music and also see where the music is coming from.

Visual Vocal

Probably the most expensive type of sync license is a visual vocal license where you can see the person who is singing the song that is being played. The license will be even more expensive where the original singer or band of the song is playing the music.

Visual Dance

Yet another type of licensing is a visual dance sync license. This license, as it sounds, has dance components which are visable to the viewer.

As you can see, there are many different issues that come together when negotiating a synchronization license. Before you decide upon what kind of music to use in your visual production, take into consideration exactly how you plan to use the song.

For more information, or for assistance with a synchronization license, contact Biletsky Law.

Netflix Takeover

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Biletsky Law - Netflix TakeoverApproximately 95 million U.S households subscribe to some form of cable television. Since cable’s introduction to the consumer public, cable providers have generally enjoyed an increase in the number of subscribers. However, for the first time in decades, this trend may come to a standstill. Subscription video on-demand streaming services such as Netflix, Hulu, and Amazon are quickly gaining ground and recent surveys have even shown that up to 40% of U.S households subscribe to one service or another. What may be even more surprising is the ever increasing numbers of households who are customers of a streaming service provider but who do not pay for cable television.

Although modern cable services are often bundled with internet services, the massive numbers of customers who are flocking to the streaming services should be nothing short of alarming for the cable companies. What was once seen as the cable companies’ dominate marketplace (aside from satellite companies such as DirectTV and Dish Network), is now a shared marketplace with providers who are able to cater to their user’s exact needs.

But what does this mean to the average consumer? The low cost of these video on-demand streaming services has resulted in the major cable companies offering more incentives in an attempt to retain or recruit customers. Despite what “incentives” some of these companies are offering, there are little indications that consumers are buying into the cable companies’ attempts to mitigate the impact that the streaming services are having on their customer base.

To further divest the cable companies of their customers, several of the major streaming services have started producing original exclusive content that can only be viewed through their services. Hit television series such as “House of Cards” and “Orange is the New Black” are commanding such extraordinary viewership that it is hard for the networks to keep up in their offerings of unique and captivating television series.

In addition to the original content offerings that the streaming services have, the streaming services have opened up new opportunities for smaller or lesser known productions to be picked up as a television series. These productions, which may have otherwise gone unnoticed, are now being given the chance for their concepts to see the light of day and to be produced.

While the landscape of television continues to change, so does the way in which consumers are able to view and access the content they want.

For more news and stories related to the changing media industries, be sure to follow Biletsky Law on social media.

New Mexico Tax Incentives

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Biletsky Law - New MexicoMany states around the country offer tax incentives to film and television productions in an attempt to lure the production into the state. With major motion picture and television productions comes the possibility of a state receiving a great economic benefit from having the production team located in the state as well as the use of many of the state’s resources.

While Louisiana, Georgia, and Massachusetts have been recognized as some of the states with the most favorable tax incentives, other states such as Alaska and Pennsylvania have started making a name for themselves on the list. On April 10th New Mexico has also boosted their tax incentives when Governor Susana Martinez signed a new tax incentive bill which allows production companies to pre-assign their tax rebates to third parties and which also extends a 30 percent tax credit to stand-alone pilot episodes under the condition that they shoot the show in New Mexico and encourage producers to hire and source locally.

This move marks an effort from New Mexico to join the ranks of states which offer production companies substantial tax credits in order to bring in revenue from the entertainment industry. But the new productions that may be enticed to film in New Mexico won’t be the first ones on the scene. Starting in 2008, the hit AMC television series “Breaking Bad” began their five season run by shooting on location in New Mexico.

It is no wonder that the bill signed by Governor Martinez applies to pilots which may at some point become television shows. The five seasons of filming that Breaking Bad brought to Albuquerque likely brought substantial revenue to the city and state due to the production crew and actors who stayed in New Mexico during the production as well as the locations and resources that were used throughout the series.

Although these immediate economic benefits are the majority of the reasoning behind these types of tax incentives, certain hit movies or television shows also leave a lasting impression in the area where the production was filmed. Take the sets that were used for the Breaking Bad filming for instance. Now that the film crews and sets are gone, a new type of tourism has been created in the city of Albuquerque. This type of tourism, which is often created as the result of a hit production being filmed in a certain location, is a form of “pop-culture” or “filming” tourism. Tours, guides, and maps are set up which provide tourists with information on the locations that were used for the production’s filming. http://www.visitalbuquerque.org/albuquerque/film-tourism/breaking-bad

For more information on state-by-state tax credits, contact Biletsky Law.