The early 1990s saw a huge production increase in theatrical motion pictures, television film, basic and pay cable, and direct to video projects.

The film industry invested in "mass production" by putting out more projects at lower budgets. Because of budgetary constraints, many producers made decisions to score their films overseas or with non-union musicians. AFM musicians were being left out of the low budget films.

The AFM needed to adapt to this new film environment and recapture employment. The response was the new Low Budget Film Agreement, which provides for lower session wages while maintaining special payments, pension, and health and welfare at the regular Motion Picture and Television Film levels.

Each film is evaluated and reviewed against the Low Budget Film Agreement requirements and procedures outlined by the AFM. A Production Budget Estimate must be sent in, and a signed Assumption Agreement must be in place.

New motion picture companies, new producers and directors, and most importantly new composers, are discovering the benefits of hiring the most professional musicians in the world. Plus, since low budget films have guaranteed Special Payment Fund (SPF) monies to the musicians, the individual musicians can receive a greater amount of SPF participation.

One of the biggest challenges facing sound track record companies is the consideration of actual recording costs relative to the realistic projection of sales. Because of this, composers recording their scores with AFM musicians realized the high cost could jeopardize their chances of a sound track release and thus composers scored the pictures overseas.

To cope with this problem, the AFM, at the recommendation of the Recording Musicians' Association (RMA), negotiated a sideletter to the AFM Basic Theatrical Motion Picture and Television Film Agreements. The sideletter allows sound tracks to use the low budget rates (25% discount) provided they meet the following conditions.

1) The CD jacket or packaging must:

· show the AFM logo or give credit to the AFM,

· include the instrumental musicians who performed on the largest session, and

· credit the leader/contractor, orchestra manager, librarian, and music prep.

2) An organization name credit must be placed on the front or back cover.

3) The producer must provide the AFM 75 copies of the sound track CD.

The huge success of this sideletter agreement prompted both the AFM and the Alliance of Motion Pictures and Television to agree to incorporate it into the film agreements during the film negotiations in early February.