New Media, New Payment Concerns

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The deadline’s more than a year away, but new media and the fragmented TV landscape are shaping up to be the big issues when advertisers renegotiate their $800 million talent contract with the actors’ unions this fall.

The question on the table could be framed as: How much should the guy in the Subservient Chicken suit be paid to star in Burger King’s ads? Or: What’s the scale for ads on cell phones, in-store TV systems, product placement and “viral” video files like BK’s infamous chicken promo?

In October 2006—when advertisers must renew the three-year pact that governs how much talent gets paid for commercials—the discussion will center on whether stars should get paid more for appearing in more types of media, according to sources on both sides of the talks.



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