September 18, 2022
Netflix Screenwriter Compensation Dispute, YT Trending - Latest Technology News

Netflix to pay $42 million in dispute over screenwriter compensation

According to the Writers Guild of America, hundreds of creators were underpaid by Netflix.

In a dispute over screenwriter compensation, Netflix will be forced to pay a reasonably large sum. According to a dispute resolution decision that the Writers Guild of America won, Netflix will now pay 216 theatrical movie writers an additional $42 million in unpaid residuals. In addition, the WGA is asking for an additional $13.5 million in interest fees.

Netflix Screenwriter Compensation Dispute, YT Trending - Latest Technology News
Netflix to pay $42 million in dispute over screenwriter compensation

The WGA claimed that Netflix engaged in “self-dealing” to enable it to underpay writers. According to the guild, residuals for theatrical releases are supposed to be paid based on sales made in a particular market, while licences like Netflix’s (where it serves as both producer and distributor) demand payments based on more traditional arrangements, such as a Sony movie licenced to Netflix. Netflix, however, reportedly negotiated agreements with the Screen Actors Guild (SAG-AFTRA) and Directors Guild of America that allowed it to pay residuals on its own movies for “significantly less” than the cost of the film.

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According to the WGA, the win was aided by an earlier victory over the Sandra Bullock film Bird Box. A formula similar to that from the most recent dispute was used by the arbitrator to determine that Netflix significantly underpaid a screenwriter. Netflix was ordered by the arbitrator to pay the writer $1.2 million in royalties and interest.

For comment, we’ve contacted Netflix. On the other hand, the WGA wasn’t afraid to criticise. It described Netflix as one of the “worst violators” of the guild’s basic residuals agreements and viewed the arbitration as a retaliation against media companies that were attempting to “depress” pay through streaming services. This kind of conflict may continue to occur throughout the industry, so don’t be surprised.

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