Landmark “Self-Dealing” Arbitration Found Netflix In “Violation” Of WGA Contracts

deadline.com:

The landmark “self-dealing” arbitration between the WGA and Netflix, which awarded more than $450,000 in underpaid residuals to Bird Box screenwriter Eric Heisserer, took place over seven days and featured multiple witnesses and dozens of voluminous exhibits, according to the arbitrator’s ruling, which has been obtained by Deadline.The guild, which won the arbitration, says that “as a direct result of this ruling, 216 writers on 139 other Netflix theatrical films are receiving an additional $42 million in unpaid residuals.” The guild says that it’s now pursuing “approximately $13.5 million in interest Netflix also owes writers for late payment of these residuals.”In his 34-page ruling in the Bird Box case, impartial arbitrator Kenneth A.

Perea found Netflix to be in “violation” of the WGA’s contract, because Netflix had used the wrong formula in determining residuals owed to Heisserer.

The guild says that’s the same “improper” formula that Netflix has applied to the other 139 “self-produced” films that were produced by Storybuilders LLC – the streaming giant’s affiliated production arm – and distributed exclusively on the Netflix platform.See the arbitrator’s findings and award here.At issue was whether or not Netflix had given itself better terms on Bird Box’s writer residuals – and by extension, for its other “self-produced” feature films – than the arms-length deals it made with producers of outside theatrical films that were licensed and marketed as “Netflix Originals” for “first-window” exhibition on its platform.

Bird Box, which starred Sandra Bullock as a mother protecting her children from unseen forces, had a limited seven-day release in 18 theaters before transitioning to the Netflix site in December 2018.But