The landscape of production will always evolve. Staying informed and ahead of these changes is key to protecting budgets and ensuring creative vision can be recognized without unforeseen costs. This update to commercial production is more than an industry footnote; it’s a structural change that requires a new way of thinking about production strategy.

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The High-Level View: What's Really Changing?

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At its core, the new agreement provides freelance production workers like line producers and production assistants with standard labor protections. These protections weren’t in place and so ultimately, this is a positive step for the workforce as it introduces new cost considerations for union-based productions.

Here are the main things you need to know:

• Overtime is No Longer Optional: Many key production roles were previously paid a flat day rate. Now, they are eligible for overtime pay. This means longer shoot days will directly translate to higher crew costs.

• Consecutive Workdays Cost More: Productions running for six or seven days straight without a break will now incur premium pay rates for the crew. This makes efficient scheduling more critical than ever.

• Benefit Costs Are Rising: More workers will now qualify for health and fringe benefits on a per-project basis, which will add a new percentage to production bids.

While we estimate the overall impact on a total shoot budget to be around 3%, the costs on specific line items for crew can increase by over 25%. Ignoring this shift could lead to unexpected budget overruns and difficult conversations down the line.

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Planning is Your Best Defense

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Simply accepting higher costs isn't the only option. Instead, this is an opportunity to re-evaluate your entire marketing production approach and find smarter, more efficient ways to work. Institute APR’s 6 P’s, an APR motto, to proactively and strategically plan for this change — Proper Prior Planning Prevents Poor Production.

Smart planning might involve optimizing your shoot schedules to avoid premium paydays or exploring production in tax-incentive states, helping to offset production costs. It could mean re-examining the scope of your shoots or leveraging new technologies in post-production to find savings that can be reallocated to cover higher on-set labor expenses.

The key is to move from a reactive to a proactive mindset. Rather than waiting for bids to come in higher than expected, you can get ahead of the curve by building a production ecosystem that is flexible, efficient, and resilient to industry changes.

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Let's Navigate This Change Together

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These new rules don’t have to mean smaller creative ideas or compromised quality. With the right strategy, you can navigate this shift and continue producing exceptional content efficiently and cost-effectively. The challenge isn't just about managing a single line item; it's about optimizing your entire marketing production ecosystem.

Understanding the nuances of union agreements, non-union alternatives, offshore production, and emerging technologies should be an expectation for any advisory partner. If you're wondering how these changes will impact your specific projects, we can help you find the answers.

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