Netflix will have to pay a large sum as a result of a lawsuit over the screenwriter salary. As Deadline reports, the Writers Guild of America has an arbitration award that will allow Netflix to pay an additional $42 million in unpaid fees to 216 feature film writers. WGA is also seeking an additional $13.5 million in interest on late payment.
Netflix has been losing subscribers for a while and has been struggling with a number of features such as preventing password sharing in order to avoid this loss of cost. Netflix, which had to lay off its employees on the one hand, seems to have to deal with bigger problems in the coming period.
Netflix’s Losses Keep Increasing
WGA accused Netflix of its “self-dealing” policy that helped it save on screenwriter salary . Netflix, which is reported to have to pay according to the calculations to be made on the revenues of the works that are released , reportedly has agreements with the Directors Guild of America and the Screen Actors Guild (SAG-AFTRA) that allow it to pay the remainder of its own films at “significantly less” than the cost of the film.
WGA claimed this decision was helped by an earlier victory over the Sandra Bullock movie Bird Box. The decision maker found that Netflix significantly underpaid a screenwriter using different methods, as in the most recent dispute. Netflix will have to pay this screenwriter $1.2 million, including interest.
Netflix thinks this decision is not correct and plans to deal with this process legally.