SAG CONTRACT 2008 REPORT Number 2 — New Media

This is the lastest update sent to SAG members this afternoon:

Each contract report represents only a portion of our proposal priorities. You will be receiving information about other proposal priorities in the coming days.

April 24 , 2008

SAG and the AMPTP have been meeting since negotiations began on April 15. Our proposals address many of the new media issues specifically confronting actors today. Below is information on this important topic.

Why Is New Media Important To Actors?

Today 134 million Americans (or 3 in 4 Internet users) view online videos each month. This means over 9 billion videos are watched online per month. YouTube alone has over 200 million unique visitors every month. This year the leading 100 media companies will realize an estimated $20.7 billion in Internet revenue. And advertisers will spend $2.9 billion annually on online video ads by 2010. All this adds up to tremendous opportunities for actors.

What is the current state of affairs in new media?

• This season some shows are being streamed live multiple times before the episode is scheduled to broadcast.

• Some series have their entire catalog of episodes available for ad supported streaming.

• Ad supported streams, downloads for rental and electronic sell through of feature films are now available.

• Some made-for new media content is moving to broadcast television.

• Made-for new media content is being created to complement the coming fall broadcast lineup.

• Subscription services are offering unlimited streams of their television and film catalogs to subscribers.

• Producers are setting up new studio systems for the creation and distribution of new media content.

• Producers are editing library content down to snack size pieces for new media distribution.

Here’s what we are asking for:

1. Reasonable minimums for actors’ work in content made-for new media.

2. Reasonable residuals for actors’ work in content made-for new media.

3. Reasonable residuals for actors’ work in content moved over from traditional media to new media.

4. Reasonable protections and compensation for actors’ work moved over from new media to traditional media.

What About Jurisdiction in New Media?

SAG is not asking for jurisdiction in new media to be granted by the AMPTP because we already have jurisdiction. In fact, through our new media organizing efforts, we have already signed over 400 independent producers to SAG new media contracts and the number is growing daily.

Please note that the above is not intended to be an exhaustive list of our proposals . It is just intended to keep you informed of the highlights.

Watch for Contract Report No. 3 on residuals coming to you Friday, April 25.