What Are Verticals
The entertainment industry is embracing Verticals, also known as micro-dramas. This new business model tells dramatic, soap-opera stories, with each episode being up to 60 seconds, featured on apps such as ReelShort and FlickReels. Verticals are short & sweet, and keep the attention of the viewer.
Vertical dramas first gained momentum in China during the COVID-19 pandemic. Verticals were a way to drive mobile storytelling. The demand for this form of media is growing, with content expanding globally, and companies like Crazy Maple Studios in the US providing an outlet as well as exposure for new storytellers and smaller actors. With exponential growth in viewership rivaling that of large studios like Netflix, advertisers and production companies are beginning to take the new model more seriously. SAG-AFTRA, the actor’s union, has now taken notice as well.
How SAG-AFTRA Could Shape the Verticals Industry
SAG-AGTRA plans on creating a contract by the end of October that will cover projects with budgets up to $300k. The Writers Guild of America West (WGA) is also taking a step towards micro-dramas, stating that the writers are covered under the WGA’s Minimum Basic Agreement.
Creating a formal Verticals agreement for SAG-AFTRA actors signals an industry shift. For talent working on a SAG-AFTRA covered project, this means there will be new standards set for pay, residuals, and potential royalties in ultra-short content. An industry standard contract for talent will be beneficial for ensuring that actors are receiving appropriate payment and protection from the union for the projects they work on, no matter the scope. It can also implement standards for likeness usage (including restrictions around use of AI) and exclusivity. As there are multiple apps for Vertical dramas, contracts will likely continue to evolve to reflect multi-platform syndication across TikTok, Instagram, YouTube Shorts, and other new media platforms.
With the rise of short form media consumption by audiences around the globe, it is clear that the traditional talent business model will need to adapt. Some have criticized the union’s move, arguing that micro-dramas operate on a much lower budget and different scale than film and television, with the guild’s expansion likely to become an impediment to production. However, proponents of the guild’s position point out that Verticals may increasingly provide actors with lucrative alternative short-term gigs as longer term filming commitments for TV shows and films slow down, and therefore such gigs should be subject to the guild’s jurisdiction. The long-term viability of this market still remains to be seen.
The Legal Landscape Ahead
Just like with traditional forms of entertainment media, it will be important for micro-drama creators and producers to obtain proper chain of title documentation and production contracts for distribution of these short-form projects. Any serialized content that comes from already existing brand content in China will also need to be properly licensed or acquired, so keeping track of ownership of the original story will be essential as these shows continue to expand production in the US.
For writers, it is essential to register their scripts with the U.S. Copyright Office to receive copyright protection, as with long-form feature films and television scripts. Micro-dramas could serve as launchpads for subsequent TV or film adaptations, in which case protection of their underlying intellectual property becomes critical to receive any entitlements from future derivative works.
Product placement deals may become lucrative investments for these types of projects as well, as brands are likely to view this new content as a digital marketing opportunity to create more visibility for their products or services. Standard clearances will need to be secured in order to ensure these projects are commercially exploitable.
Conclusion
SAG-AFTRA is still in the early stages of negotiating the new Verticals contract. However, the union’s acknowledgement of this new form of media indicates a trend towards embracing short-form content and redefining the entertainment landscape in the digital age. Other unions, such as the WGA and IATSE, are also recognizing the popularity of new short-form media and are exploring how their members can remain safeguarded while participating in the short-form content boom. Businesses and creators can look ahead by planning formalized legal frameworks that comply with the forthcoming union guidelines.
If you are a producer, actor, or writer interested in learning how Verticals or other short form media will impact your career, our entertainment attorneys can help you understand your rights and obligations in this shifting legal landscape. Contact us today to discuss your rights and protect your creative legacy.
Contribution to this blog by Samantha Lori Glass.
Photo by Jeremy Yap on Unsplash
