Netflix ordered to pay $42 Million in Unpaid Residuals

Netflix ordered to pay

AUTHOR: Tom Siegman, EVP, Innovation Strategy & Client Relations, RSG Media

An arbitrator just ordered Netflix to pay $42 Million (plus interest) to the Writers Guild of America because it originally underpaid its talent in residuals.

To calculate talent payments, Netflix had relied upon the formula in their contract with SAG-AFTRA, to which the WGA is not a party. According to Deadline, this error affected the writer for Bird Box and 216 other writers on 139 different films.

Talent payment schemes are inherently complex. Mistakes are costly, affect future relationships with talent, and hurt your (Wall) Street Cred. But This is why we made our Rights, Royalties, Residuals, and Participations modules comprehensive. At RSG Media, we handle every guild rule and the most intricate participation agreements. We’re auditable, SOX compliant, and give you the kind of transparency into your calculations that your talent will love.

If you’re at Netflix and want to avoid headaches like these, click here to request a demo of our Rights, Royalties, Residuals, and Participations modules.

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