WGA Settles With Amazon Over Unpaid Residuals, Collects $4 Million – Deadline


The WGA has settled an arbitration against Amazon, collecting more than $4 million in underpaid residuals and interest owed to 37 screenwriters on 31 films produced or acquired by Amazon. The settlement comes in the wake of a similar “self-dealing” arbitration that the guild recently won against Netflix, in which the guild collected $42 million in unpaid residuals on a total of 140 Netflix-produced films.

“Like Netflix, Amazon had been systematically undervaluing imputed license fees on theatrical films where it was both the producer and the distributor,” WGA West leaders said Wednesday in a communique to members. “Amazon even underpaid residuals on films it acquired from independent producers, imputing a low license fee for these films rather than paying the writer a residual of 1.2% of the actual license fee paid to the producer, as required by the MBA (Minimum Basic Agreement).”

The guild filed arbitration claims against Amazon in 2020 and a hearing had been set for May 2022.

“Like Netflix, Amazon had argued that the guild should accept the substandard formula Netflix negotiated with DGA and SAG-AFTRA,” WGA leaders told their members. After the Netflix arbitration, in which the arbitrator ruled that the license fees should be 111% of the gross production budgets, the guild noted that “Amazon agreed to settle the claims and apply this formula to its self-produced films. Amazon also agreed to pay residuals of 1.2% of the actual license fee paid to the producer on its acquired films.”

Under terms of the Amazon settlement, the guild said it will collect a total of $4 million for Amazon screenwriters, in which Amazon will pay $3.3 million to 19 writers on 13 self-produced films, which represents $2.1 million in residuals and $1.2 million in interest. The guild said that Amazon will also pay residuals and interest owed on 18 films it acquired, totaling $767,000 for 18 writers, which represents 458,126 in residuals and $308,874 in interest.

“We will continue our enforcement work to ensure that streamers pay writers fairly for the content we create, as required by the MBA,” guild leaders said.


Source link

Add a Comment

Your email address will not be published. Required fields are marked *