With the internet's infinite capacity for product becoming more apparent every day, the DGA recently unveiled its new internet agreements. The agreements are seen as a means for the Guild to take an active role in encouraging the development of quality product for the net as well as a means to expand employment opportunities for Guild members.

DGA National Executive Director Jay D. Roth said that the agreements have been in development for some time and were recently approved by the National Board. "The internet agreement was the result of considerable investigation and analysis of this new medium," Roth explained. "Not only as it is written about in the trade press, but also our Research Department and Residuals Department have been and continue to monitor, on a daily basis, what is available on the net. We are developing approaches, proposals and agreements based on our developing understanding of what is happening on the internet."

Because the net is in its infancy, Roth stressed the need to be as flexible as possible. "There are many revenue models for how distribution will occur on the internet," he said. "No one knows for sure which of these models will succeed.

"Therefore, the agreements are experimental in nature and will be modified as developments and revenue streams become clearer, both to service the needs of DGA members and the needs of the industry," he added.

"One thing that is clear is that billions of dollars of advertising revenue and billions of dollars in subscription fees for audiovisual products will be ultimately generated. Our internet agreement is written to make certain that our members are there at the earliest possible time. The agreement also allows for the greatest amount of flexibility for our members."

The agreements are modeled on the Guild's very popular Low Budget Film Agreements which give DGA directors the freedom to work on low and moderately budgeted projects and to bring with them the talents and experience of their DGA directing teams. 

In addition, while highly flexible in regard to budgetary concerns, the agreements protect members in the crucial areas of their basic creative rights, credits and the pension and health benefits as guaranteed under the DGA Basic Agreement and Freelance Live and Tape Television Agreement.

Under these agreements there is no residual compensation for free internet use. However, the new agreements also require that signatory internet companies provide all DGA members with a deal memo and set up rules for residual compensation should projects migrate to other markets such as theatrical, television or home video.

Roth cautioned that it is crucial for Guild members to remember their obligation that when they are working in a DGA category they must work only for employers who sign an agreement with the DGA. 

"It is extremely important to remember that obligation," Roth said. "Besides providing members with DGA protection and benefits, these agreements will also help us monitor the emerging economics of internet production and distribution."

If you have any questions about whether a particular employer has signed the DGA Internet Agreements or to arrange for a company to sign, please call the DGA Signatories Department at (310) 289-2085. If you have questions about how the agreements work, please call Bryan Unger or Warren Adler in the National Office, Christina Lomolino in the New York office or Dan Moore in the Chicago office.

-Ted Elrick