Netflix pays hundreds of thousands extra in residuals to writers, WGA says

The Writers Guild of America West mentioned Thursday that 216 writers who labored on Netflix theatrical movies acquired a further $42 million in unpaid residuals because of a latest arbitration ruling.

An arbitrator dominated in favor of the WGA, which raised cost considerations over the residuals owed to a author on the favored thriller “Bird Box.”

Because of the ruling, Netflix was required to pay the author $850,000 in residuals, together with curiosity of $350,000, in keeping with WGA West in a letter despatched to its members on Thursday.

The guild mentioned the ruling affected 139 different Netflix movies that contain WGA West and East writers, together with motion film “Red Notice” and comedy/drama “Yes Day!”

WGA West mentioned it’s pursuing about $13.5 million in curiosity from Netflix for late funds of the residuals on these tasks.

Netflix didn’t reply to a request for touch upon the ruling.

The guild’s minimal fundamental settlement (MBA) with the Alliance for Movement Image and Tv Producers expires subsequent 12 months in Could.

Underneath the MBA, writers earn residuals primarily based on revenues earned in streaming markets, which is usually 1.2% of the license price given to the producer or if Netflix can be the producer and distributor, then the price is computed primarily based on licensing charges between “unrelated parties of comparable pictures,” WGA West mentioned.

Netflix has negotiated separate offers with Hollywood unions such because the Administrators Guild and SAG-AFTRA, however didn’t have such a deal in place with the WGA.

“Netflix then tried to force the WGA to take this ‘pattern’ deal,” the WGA West leaders mentioned in a letter to its members. “Since it was clear the new formula negotiated by the other Guilds undervalued these ‘imputed’ license fees, the Guild instead took the dispute to arbitration.”

WGA West estimates that the arbitration ruling allowed 216 writers of Netflix theatrical movies to obtain $20 million extra in residuals than they might have beneath Netflix’s offers with DGA and SAG-AFTRA.

“Bird Box” stays considered one of Netflix’s hottest English-language movies of all time on the platform, rating at No. 3, primarily based on hours considered, in keeping with the streaming service. “Bird Box” was considered 282,020,000 hours throughout its first 28 days on the streaming service, Netflix mentioned.

“As the studios increasingly engage in self-dealing on their own streaming platforms, we must ensure that writers are paid properly,” mentioned WGA West leaders in a letter to its members.