WGA raises over $ 4 million in unpaid residue deals with Amazon

The WGA resolved the arbitration against Amazon, collecting more than $ 4 million in arrears and interest from 37 screenwriters on 31 films produced or acquired by Amazon. The deal follows a similar “auto deal” arbitration that Guild recently won against Netflix, in which Guild raised $ 42 million in unpaid delays from a total of 140 Netflix-produced films.

“Like Netflix, Amazon has consistently underestimated the licensing fees it charges on theatrical films it was both producer and distributor of,” WGA West leaders said in a statement to members Wednesday. “Amazon also underpaid the residues of the films it acquired from independent producers, charging a lower rent for those films instead of paying the writer a residual 1.2% of the actual rent paid to the producer., As required by the MBA ( Minimum framework agreement).).) “

The union filed an arbitration lawsuit against Amazon in 2020 and the hearing is scheduled for May 2022.

“Like Netflix, Amazon has argued that the union should accept Netflix’s shoddy formula negotiated with DGA and SAG-AFTRA,” WGA leaders told their members. Following Netflix’s arbitration, in which the arbitrator ruled that licensing fees should be 111% of gross production budgets, Guild noted that “Amazon has agreed to resolve the complaints and apply this formula to films that Amazon has also agreed to pay a residual license fee of 1.2% of the actual license fee paid to the producer for the films it acquires.

Under the terms of the deal with Amazon, the guild said it will raise a total of $ 4 million for Amazon Screenwriters, in which Amazon will pay 19 screenwriters $ 3.3 million for 13 self-produced films, or $ 2.1 million. $ 1.2 million in royalties and $ 1.2 million in interest. . . The syndicate said Amazon will also pay royalties and interest on the 18 films purchased, totaling $ 767,000 to the 18 screenwriters, equal to $ 458,126 in royalties and $ 308,874 in interest.

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