Netflix to pay $42 million in dispute over screenwriter compensation

Netflix must shell out a hefty sum in a combat over screenwriter pay. As Deadline experiences, the Writers Guild of America has gained an arbitration ruling that can have Netflix pay 216 theatrical film writers an additional $42 million in unpaid residuals. The WGA can also be looking for one other $13.5 million in curiosity for late cost.

The WGA accused Netflix of “self-dealing” that helped it skimp on author pay. Residuals for theatrical releases are alleged to be paid on revenues earned in a given market, in line with the guild, and licenses like Netflix’s (the place it is each the producer and distributor) demand charges primarily based on extra standard relationships — a Sony film licensed to Netflix, for instance. Netflix, nonetheless, reportedly negotiated offers with the Administrators Guild of America and Display screen Actors Guild (SAG-AFTRA) that allow it pay residuals by itself films for “considerably much less” than the price of the movie.

The win was helped by an earlier victory over the Sandra Bullock film Chook Field, the WGA claimed. An arbitrator discovered that Netflix considerably underpaid a screenwriter utilizing a formulation like that from the latest dispute. The officiator instructed Netflix to pay the author $1.2 million in residuals and curiosity.

We have requested Netflix for remark. The WGA wasn’t shy about its criticism, nonetheless. It characterised Netflix as one of many “worst violators” of the guild’s primary agreements for residuals, and noticed the arbitration as a pushback towards media firms attempting to “depress” pay by means of streaming providers. Do not be shocked if there are extra battles like this throughout the business.

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