By Emmanuel Legrand
The Swedish Union for Performing Arts and Film (Teaterförbundet) has signed a groundbreaking partnership with Netflix to set up a collective frame agreement to remunerate local creators. Teaterförbundet said this is the first time that a streaming entertainment service has concluded a collective agreement of the sort in Sweden.
The collective frame agreement will see Netflix compensating Swedish creators for initial showing of an original series, as well as providing additional remuneration for each individual season. It also includes a share of Netflix’s secondary exploitation revenues, if for example the company decides to license a series to a traditional broadcaster, distributed to all entitled parties.
The agreement also ensures a pro rata payment based on certain contractual thresholds related to the number of streams accumulated by each programme. "Each party believes this is an important step toward ensuring fair and appropriate remuneration, and deepening Netflix’s commitment to the Swedish creative community and with its Swedish producing partners," said the two parties.
Understand each other's objectives
"I am pleased that we have come to an agreement that provides consistency within the creative relationships and demonstrates our mutual commitment to the Swedish ecosystem," said Rachel C. Schumacher, Senior Counsel, International Labour Relations at Netflix. She added: “Netflix is committed to ensuring fair and appropriate remuneration for its talent, and thrilled to be embarking on this historic partnership with Teaterförbundet. We have built a relationship over time and worked hard to understand each other’s needs and objectives."
The sentiment was shared by Ulf Mårtens, chief negotiator for copyright issues at Teaterförbundet: "Throughout the negotiations, both parties have shown a great deal of dedication in reaching an agreement that we hope will further strengthen the creative community. With Netflix being the first streaming service in Sweden to conclude a collective agreement, we look forward to working together to keep building a fair and progressive industry.”
This agreement, which already exist in countries like France, could be replicated in other European countries where audiovisual creators are usually remunerated through collective management agreements with broadcasters when their works are used.