Today, SAG's chief negotiator said he could not accept AMPTP's offer because the digital media "landscape has dramatically shifted in the six months since the DGA" reached its deal. This statement is not just factually untrue; it ignores the truly seismic shifts we have all seen over the last six months in the rapidly deteriorating economy, the worsening credit crisis, and the skyrocketing price of energy. Even in the midst of these severe economic problems for our country and our industry, AMPTP has made SAG a good and fair offer, with more than $250 million in increased compensation, groundbreaking new media rights, and pension and health protections that most Americans would envy.

By refusing to accept the AMPTP's offer, SAG's negotiators are ensuring that SAG members will continue to work indefinitely under the old contract - a contract negotiated by SAG that has allowed for non-union Internet production since 2001. AMPTP has offered to extend SAG jurisdiction to original new media production, including low-budget programs that employ a single "covered actor." The AMPTP's final offer also guarantees residuals of 3.6% of distributor's gross when original new media productions are reused on consumer pay platforms, and terms to increase pay and residuals if the program is eventually exhibited theatrically or on television. These terms are a major advancement for SAG members compared to the existing contract terms.

In addition, the new media framework we have offered to SAG establishes first-ever residuals for ad-supported streaming, made-for new media programs and reuse of clips in new media. We have also offered to double the residual rate for permanent downloads and give SAG exclusive jurisdiction over new media programs derived from existing television series. Not a single one of these rights exists under the contract that expired on June 30th - a contract that SAG members now must work under because of the failure of SAG negotiators to make a deal.