Advertisers, actors reach agreement on commercial strike

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Striking unions and advertisers reached a tentative three-year contract Oct. 22, signaling an end to the nearly six-month-old commercial actors strike. According to reports, the unions, the Screen Actors Guild and the American Federation of Television & Radio Artists, will get a healthy increase in cable fees, as well as getting jurisdiction over Internet-run commercials. The Internet agreement is expected to give actors a yearly payment of $1,500. A maximum payment on cable will give actors, in the third year of the union contract, $2,460 for a 13-week run of a commercial. This is more than double the former cable fee. The tiny Pax network, a two-year-old broadcast network, will be included in the cable part of the deal. While the unions gained a large increase in the flat fee actors will get for cable, they failed on one of their key goals--a pay-for-play formula on cable, a more lucrative formula that is used to compensate actors for airings of commercials on broadcast television. A news conference announcing specifics of the agreement is set for 2 p.m. Eastern time Oct. 23 in New York. The deal must be ratified by the memberships of both unions.

Copyright October 2000, Crain Communications Inc.

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