The sorry state of streaming residuals shows why SAG and the WGA are striking.

  • droans@lemmy.world
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    1 year ago

    Fwiw, the title is intentionally skewed and wrong. I’m not saying writers shouldn’t be upset because they should, but it is making the situation look much worse than it is.

    The six original writers were paid $3K each in streaming residuals last quarter for Season 1.

    Suits was added to Netflix on June 17th where it streamed for three billion minutes in a single week, June 26 to July 2. Using Nielsen numbers, it streamed for about five billion minutes on Netflix during Q2. Previously it was on Peacock and we don’t have the streaming data for that, but we can assume that it wasn’t anywhere as much. Using the most recent data through July 16, it was seen for a total of 12.8 billion minutes.

    Streaming services also doesn’t pay residuals based on minutes watched, but based on a complicated formula.

    Suits episodes are 42 minutes long, meaning the base annual residual is $10,034. Netflix US has more than 150M subscribers, so the subscriber factor is 150%. Their initial streaming residual payment would be $15K per episode.

    However, that is just the initial payment Netflix needs to make. Subsequent payments for the actual streaming rights per year are adjusted down. This is the first year on Netflix so the residual factor is 45%. This makes the base annual payment $7,448.

    Now, the show was on Netflix for 14 days during the last quarter, making their Q2 residual $286. WGA also imposes a 1.5% union due plus $25 per quarter. This brings the payment per episode down to $256.