Talent fees for advertising lagging the entertainment & media industry

One of the big issues for advertisers is the cost of talent fees. While Australia does not have the “residual” payment system used in the USA, the increasingly divergent media options is causing a cost multiplier effect in regards to the use of the “Three screen”.

Under the current MEAA Award for talent fees, the fee is charged on the basis of the media, duration and geography, with guidelines for a multiplier effect as additional media and geographies are added.This means that if an advertiser wants to create a TVC and then use this on commercial free to air, subscription and cinema, plus stadium screen, in-flight, MMS mobile and the internet, then the base fee is multiplied by the number of media.

If the audience base is $20 million people (Australia’s population) then why should there be multiple effect based on the different types of screens? Instead, what about a single talent fee negotiation for “screens”? That way you know up front that for a particular duration and geography a single talent fee, negotiated up front.

And before anyone says “but the Internet is not limited to a particular geography” then the advertiser can limit the exposure of the commercial based on IP addresses. But what actor would not like global exposure to expand their career?

Author: Darren Woolley

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About Darren Woolley

Darren is considered a thought leader on all aspects of marketing management. A Problem Solver, Negotiator, Founder & Global CEO of TrinityP3 - Marketing Management Consultants, founding member of the Marketing FIRST Forum and Author. He is also a Past-Chair of the Australian Marketing Institute, Ex-Medical Scientist and Ex-Creative Director. And in his spare time he sleeps. Darren's Bio Here Email: darren@trinityp3.com
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2 Responses to Talent fees for advertising lagging the entertainment & media industry

  1. David Parton says:

    Hi I have a question if you can help me. I was involved in an advert 28 years ago and now the company is wanting to re-run the old advert. I have been approached and offered a usage fee for the TVC to run.
    It is proposed for 2 months national usage – FTA/Pay TV, internet, stadiums, events, instore/POS.
    Can you advise what fee I should be paid for this?

    • Darren Woolley says:

      Hi David, I am assuming you mean on screen as an actor? Or were you involved in some other capacity, such as a composer, or voice over etc? Technically as an actor, you could charge whatever you like as you are out of contract. Of course they are not compelled to pay it as they could choose not to run the ad again if the cost is prohibitive. A few years back I had a client contact me to see if they could help with an actor who refused to allow them to run an ad that was almost 20 years old. When it was made the actor was a struggling unknown. Today they are a major A list Hollywood star. They did not want the ad to run so they simply refused permission.

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