SAG AFTRA Releases Vertical Series Agreement for Microdrama Productions

The union’s newly released Vertical Programs Agreement introduces budget caps, minimum day rates, pension and health contributions, and rules for reuse of performances. The changes expand protections for performers in mobile native entertainment, while increasing costs that producers must plan for.

SAG AFTRA has published a dedicated agreement for entertainment programs made for vertical 9:16 exhibition in mobile first installments under 120 seconds per chapter. The contract is designed specifically for microdramas and short chapter based storytelling that has grown rapidly on mobile platforms including TikTok and ReelShort.

The agreement covers productions entirely shot in the United States with a budget no greater than 300,000 dollars and no more than 30 consecutive shooting days. 

Real wages for real work

For the first time in this vertical specific category, minimum day rates are now mandatory:

• Lead Performers: 250 dollars per day

• Other Performers: 164 dollars per day

• Background Actors (when incentive used): 144 dollars per day

These wages apply to all chapters as a single longform runtime for overtime and break calculations. 

Pension and Health contributions included

Producers must pay pension and health contributions based on the performer’s gross compensation, including any residuals if due. 

This gives microdrama performers access to career supporting benefits that were often missing in the mobile only space.

Incentives to hire Background Actors

If producers average two covered Background Actors per shooting day, the maximum allowable production budget increases by 50,000 dollars. 

This rewards productions that create additional union employment.

Residuals rules tied to distribution

Residual obligations in new media depend on budget level and where the content is exhibited:

• Programs below 25,000 dollars per minute incur no residuals for new media use

• Any other circumstances require negotiated residuals with SAG AFTRA before distribution 

While modest, this introduces a pipeline for ongoing performer compensation when productions scale.

Clarifying responsibility and administrative load

The agreement comes with strict compliance expectations:

• Producers must file contracts, time reports, payroll, and cast lists on schedule

• SAG AFTRA reserves the right to monitor production and sets

• Producers must provide financial assurances (bond or cash escrow) if requested

This ensures performers are paid properly, but increases paperwork and budgeting complexity for smaller studios.

A stronger professional floor

Supporters argue the agreement pushes vertical content toward parity with traditional production. Performers receive predictable wages, real benefits, and increasing pathways to career stability.

Producers note that mandatory minimum rates and contributions could challenge business models that rely on low budgets and extreme output volume. Still, with more platforms investing in professional microdramas, incorporating labor standards now may prevent larger disruptions later.

The Vertical Programs Agreement is effective through June 30, 2026 and may be extended.