Members of the Writers Guild of America (WGA) are striking for better compensation and staffing commitments from Hollywood’s studios. Streaming services have significantly undercut their compensation, and the writers are seeking to recover lost income by proposing streaming payments that take into account the number of times an episode is viewed, and the number of subscribers outside the U.S.
Broadcast networks used to pay writers multiple times for their work, including a script fee for each episode and residuals every time the show aired again. Streaming changed the compensation structure and now accounts for the largest share of TV residuals. Writers have seen their residuals drop significantly, with some receiving only a few hundred dollars for their work.
The Alliance of Motion Picture and Television Producers, the group negotiating on behalf of the studios, says streaming has been a boon for writers, giving them more opportunities for assignments and allowing them to earn income on shows that were canceled or would not otherwise reach syndication. The guild is looking to close the gap in domestic and international residual payments, and is proposing a 200% increase in foreign streaming residuals.
Writers are hoping for a fair share of the profits from streaming services, which have become the dominant force in television. With streaming, residual payments are not based on the number of times an episode is viewed, but rather a fixed annual fee that takes into account the number of subscribers. Writers are hoping for a system that reflects the value of their work and the success of the shows they write.