On April 11, 2025, The Joint Policy Committee, LLC (JPC), led by DLA Piper Partner and Chief Negotiator Stacy Marcus, and the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) reached an agreement on terms for successor Commercials and Audio Commercials Contracts (Commercials Contracts). The DLA Piper team also consisted of Partner and JPC Legal Counsel Michael Isselin and Associate Emily Faro.
On April 27, 2025, the National Board of SAG-AFTRA unanimously approved the deal that will now be submitted for ratification by SAG-AFTRA members. The memoranda of agreements (MOAs) are forthcoming.
This is the first major agreement to be successfully bargained with SAG-AFTRA without strike since 2022. It follows subsequent negotiations with the Alliance of Motion Picture and Television Producers (AMPTP) and Interactive Producers in 2023, which had led to SAG-AFTRA strikes.
Summary of key changes in the 2025 Commercial Contracts
1. Artificial intelligence (AI):
a. Digital Replicas
i. Definition, notice, and consent:
1. 48-hour notice is required prior to services for creation or use of a Digital Replica (or shorter if the performer is engaged less than 48 hours prior to the performance).
2. Producers may obtain consent to the use of a Digital Replica to generate performances in commercials for which performers have not yet been engaged provided that: (i) the performance(s) to be generated are consented to in the reasonably specific description and (ii) commercials are for the same advertiser and product line and production commences within the maximum period of use (MPU) of the original commercial for which the producer engaged the performer.
3. Consent can be obtained either through the Digital Replica Rider appended to a performer’s employment contract or in a separate writing that is signed by a performer.
4. Producers may continue to use historic digital technologies (that may include AI components) to replicate or alter performers’ voices, likenesses, and performances, consistent with historical practices.
ii. Session payments for use of a Digital Replica: If a producer uses a Digital Replica to generate a performance that a performer would otherwise have performed in person, there will be 1.5 scale session fees for each commercial in which a performance generated by a Digital Replica is used. One scale session fee may be applied to use fees.
iii. Use and holding fees for Digital Replicas: Performers are paid for use of a performance generated by a Digital Replica as if the performer had performed in person, including all holding and use fees at scale.
b. Synthetic Performers
i. Where a Synthetic Performer is used in a commercial that includes the on-camera principal performance of at least one human: The producer shall, within 30 days of the first air date of the commercial, pay 1.5 session fees and contributions under Section 47 – Contributions to Pension and Health Plans of the Commercials Contract based upon the 1.5 session fees and, where applicable, based upon performer category, scale use, and holding fees that would have been due to a human performer rendering the performance.
ii. Where a commercial is produced using exclusively Synthetic Performers, the producer and SAG-AFTRA will (in consultation with the JPC when the producer is an authorizer) negotiate in good faith regarding the amount of the contribution, if any, payable under Section 47 – Contributions to Pension and Health Plans of the Commercials Contract.
2. Codification of the Low Budget Digital Waiver and extension of term: The parties agreed to codify the Low Budget Digital Waiver as it exists, to sunset on March 31, 2028.
3. Wages, use fees, and P&H:
a. Wages: Wages will amount to 5 percent in year 1, 4 percent in year 2, and 3 percent in year 3.
b. Use fees:
i. Class A rates and cycle cap were held to 2022 rates.
ii. All cable-related rates were held to 2022 rates.
iii. New Single Channel Cable Rate: Cycle options for advertisers running on a single cable channel (excluding ESPN, TNT, TBS, USA, Fox News, Bravo, Food Network, HGTV, Hallmark Channel, TLC, NFL Network, Fox Sports 1, CNN, Discovery, and E!) were added.
iv. National Cable Waiver codified and expanded: A second tier was added for 2,000,001 to 3,000,000 subscribers.
v. New premium tier for Paid YouTube: A new category for Traditional Digital with Paid YouTube (defined as pre-roll and mid-roll on YouTube.com) was added. Rates for the new category will be 12-percent higher than Traditional Digital but will not be subject to the annual wage increase.
vi. Wild spot: Chicago is again considered a “major market” as it was prior to 2022.
vii. Streaming: Streaming Platform rates are increased as a part of the continued transition from linear to digital. Rates are not subject to the overall wage increase.
c. Pension and Health (P&H):
i. A 23.5-percent contribution rate with a waiver of 3.55 percent for JPC authorizers (ie, a 19.95-percent contribution rate) will apply.
ii. Reduced P&H allocation for commercials used on Traditional Digital: The parties agreed to a 40-percent P&H allocation for commercials used exclusively in Traditional Digital use categories.
4. Longer maximum period of use: The MPU has been lengthened to 24 months, beginning 10 business days after the start of on-camera principal photography.
5. Non-Professional Testimonial Waiver:
a. The Non-Professional Testimonial Waiver (Section 8.B.) has been updated to make clear that a producer’s payment to an endorser to provide for consideration in signing the declaration or otherwise comply with state employment laws will not preclude the producer from using the endorser for an additional commercial.
b. In order to be considered a Non-Professional Testimonial, a person’s appearance in the commercial consists of them describing their experiences and/or opinions of the product, service, or advertiser being advertised, consistent with legal and regulatory requirements for testimonials. There is no longer a requirement for any experiences and/or opinions to be independently verifiable and typical of those of a reasonable consumer in a similar situation would experience.
6. Collapsed liability cap for social media and YouTube: The Section 17 cap on liability for use after the MPU is now the same for social media and YouTube.
7. Claims: SAG-AFTRA is now required to provide the JPC a copy of any claim letter that is served upon a JPC authorizer.
The full MOAs and the JPC’s summary document, with additional details, are forthcoming.
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