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Key points in the deal include:
-- An increase in minimum rates of 3.5% each year. Exceptions include network primetime rates and daytime serial script fees, which will increase 3% each period. Program fees and upset price increase once by 3% in the second year; and clip fees increase once by 5% in the third year.
-- Made-for pay TV residuals: An annual residual payments' increase from $3,000 to $3,500 for a half-hour program and from $5,000 to $6,000 for an hourlong program.
-- Residuals of 1.2% of distributor's gross receipts for download rentals where the viewer pays for limited new media access.
-- Residuals for ad-supported streaming of feature films produced after July 1, 1971, payable at 1.2% of distributor's gross receipts.
-- Television ad-supported streaming (library) for programs produced after 1977, payable at 2% of distributors' gross receipts.
-- For download sales (electronic sell-through) where the viewer pays for permanent use of a program, residuals are to be paid at 0.36% of distributor's gross receipts for the first 100,000 downloads of a television program and the first 50,000 downloads of a feature. After that, residuals are paid at 0.7% of distributor's gross receipts for television programs and 0.65% for feature films.
-- Ad-supported streaming of television programs after 1977 payable at 2% of distributors' gross receipts one year from the end of an initial streaming window.
-- Residual payments for network primetime where in the first and second years of a contract, after the initial window, for network primetime television programs, a fixed residual of 3% of the residual base ("applicable minimum") will be paid for each of up to two 26-week periods. The agreement also calls for in the third year of this contract that 2% of the distributor's gross formula is applied immediately after the initial streaming window.
-- Residual payment (all other programs): After the initial streaming window, a fixed residual of 3% of the residual base (the "applicable minimum") is paid for each of up to two 26-week periods in the first two years of this contract. In the third year of this contract, the payment rate rises to 3.5% of the residual base.
-- The agreement also covered a definition for fair-market value on new-media residuals; access to information, clips and promotions; and health and pension fund rates.
The Internet residuals agreement stipulates that initial compensation covers writing services and 13 weeks of availability in new media when the viewer does not pay and 26 of availability in new media when the viewer pays.