We frequently wonder why the TV ads are not posted on YouTube or other places on line. The explanation seems to be "talent fees" that ought to be paid because the rights have not been "bought out" when the contract was signed and it looks like it is a unionized practice (in the US) not to accept "buy-out"s.
In this context it would not be surprising to see agencies turning to non-unionized performers. As it is, "talent fees" are the biggest roadblock to maximize the use of tobacco control ads or rather the refusal of an initial buy out.
What are the talent fees, and how much are they?
Source: CDC Media Campaign Resource Center
Performers in the commercials are paid “talent fees,” both when the commercial is originally produced and when it is reused. In most cases, performers are members of the Screen Actors Guild (SAG) or the American Federation of Television and Radio Artists (AFTRA). These unions govern the minimum charges for each type of use. In some cases, performers in nonunion commercials have been paid a single fee for all uses of the commercial; this is called a “buy-out,” and no further talent fees are due. The MCRC has compiled all of the “free” ads onto appropriate formats for educational use or for broadcast. (See question 17 about fees for use of MCRC spots outside the United States.)
Two types of talent fees exist: “holding fees” and “use fees.” The “holding fee” is a baseline activation fee that covers a 13-week period for a particular spot. The rate stays the same for 21 months as long as the spot is renewed consecutively every 13 weeks. Whenever it is dropped after any 13-week cycle, the commercial must be “reinstated” for new use; the fee often increases at this time. The “use fee” covers the specific city or state where the ad will be shown. If one state pays a holding fee, other states may use the same commercial at the same time by paying only the use fee. Contact the MCRC for information about spots in cycle.
Talent fees for each commercial are determined by a number of factors, including
- The number of performers in the commercial
- The rate each performer charges (some may accept the minimum rate allowed by SAG, called “scale”; others may charge more—these rates are negotiated between the performers or their agents and the MCRC)
- The type of use—paid use on network affiliates, cable use, use as a public service announcement, use in theaters or schools, etc.
- The music fee, if music is in the spot
The MCRC can provide estimates of talent fees for each commercial based on expected use. The exact cost will not be determined until rates are negotiated individually for each specific use.
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