The WGA is taking on Netflix more than the residuals it owes guild members. Deadline has discovered that the union has filed an arbitration claim against the streaming giant more than residuals owed to the writers of 33 of its original films that had been released in theaters for awards consideration at or close to the exact same time that they had been created offered to its subscribers.
The dispute more than the application of residuals formulas to these projects challenges the way Netflix allocates license costs for the objective of calculating residuals. Mainly because these residuals are primarily based on licensing costs, the WGA is difficult Netflix more than how substantially it paid itself to license these films to stream on its personal platform – a dispute that could have repercussions for Amazon, Hulu and Apple, which also release their personal original films in theaters to garner awards focus.
Netflix is the 1st to face this challenge from the guild for the reason that it is far and away the leader of the SVOD pack in the simultaneous theatrical release of its films. Final year, 51 Netflix original films had been created beneath WGA contracts – a developing sector that gave rise to this dispute. Amazon, Apple and Hulu, meanwhile, could come across themselves in the guild’s sights subsequent if it prevails in its arbitration with Netflix. The WGA declined comment.
Netflix also came beneath fire lately from Steven Spielberg, who argued that films that debut on streaming solutions or get a quick theatrical run ought to not be eligible for Oscars but ought to compete for Emmys alternatively. His objection came following Alfonso Cuarón’s Roma, which was released in a handful of theaters 3 weeks just before it was created offered on Netflix, went on to win 3 Oscars.
The guild’s fight with Netflix comes at the exact same time that it is threatening to go to war with the major talent agents more than packaging and production offers. The WGA says that if no agreement is reached for a new franchise agreement with the Association of Talent Agents by April six, it will order its members to fire their agents if they refuse to sign the guild’s proposed new Code of Conduct.