As Success-Based Residuals Dominate U.S. Labor Strife, Could Netflix’s European Payout Structure Be The Blueprint To Solve Strikes?
deadline.comSince the outbreak of the dual U.S. labor strikes, the issue of residuals has risen to the fore as a key battleground dividing Hollywood’s creative cluster and the studios, networks and streamers.
Both the WGA and SAG-AFTRA have proposed changes to the current, fixed residual system. The WGA has suggested a viewership-based residual model, in addition to fixed residuals, while SAG-AFTRA is asking for actors to receive a 2% share of the revenue generated from streaming content.
However, the AMPTP says the suggestions are “unworkable” and the two sides remain apart. At one point, there were noises that Labor Day had been earmarked for a deal announcement but the annual holiday came and went yesterday with no sign of an end in sight.
In recent days, some in the U.S. have begun to discuss success-based residual metrics that already exist in parts of Europe, most notably with Netflix.
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