Netflix pays millions to writers

Two hundred sixteen writers who worked on Netflix theatrical films received $42 million in unpaid residuals thanks to a recent arbitration between The Writers Guild of America West and the powerful streaming company.

An arbitrator ruled in favor of the WGA, which raised payment concerns over the residuals owed to a writer on the popular thriller “Bird Box.” Under the arbitration ruling, Netflix must pay the writer $850,000 in residuals and $350,000 in interest. The guild said the decision affected 139 other Netflix films that involved a total of 216 WGA writers.

In fact, under the guild’s minimum basic agreement (MBA) with the Alliance for Motion Picture and Television Producers, writers earn residuals based on revenues earned in streaming markets, typically 1.2% of the license fee given to the producer. If Netflix is also the producer and distributor, the cost is computed based on licensing fees between “unrelated parties of comparable pictures,” WGA West said.

Source: Los Angeles Times