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WGA Wants Higher Streaming Pay, Foreign Film Residuals

Hikes in pension/health fund caps and minimums were also among the list of high-priority goals outlined in the memo to members

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The Writers Guild of America listed eight major goals its negotiating committee is pushing towards in talks with the Alliance of Motion Picture and Television Producers, including increased minimums and larger residuals for films released overseas.

The email was sent as part of a series of notices from the committee to WGA members to keep them informed of the guild’s position in these talks. The guild usually holds a series of meetings prior to the start of negotiations to answer members’ questions, but such meetings were canceled due to the COVID-19 pandemic. Talks with the AMPTP began last week remotely after an initial start date in March was postponed by the pandemic.

If included in the contract, this would be the first time that feature film writers would receive residuals based on their films’ foreign box office performance. The WGA argues that writers should be included in the profits studios are taking in from growing box office markets, particularly China.

“When residuals for feature films were first negotiated in 1960, the foreign box office was miniscule,” the guild’s memo read. “Today, the foreign box office is three-quarters of the worldwide total. It’s long past time for screenwriters to share in the generated revenue and receive a foreign box office residual, just as writers do with foreign television.”

The current contract between the AMPTP and WGA expires on June 30, the same date as the AMPTP’s contract with SAG-AFTRA, which is also currently in negotiations. Read the full memo below.

Dear Members,

We are bringing a range of proposals to the table addressing issues of particular interest to screenwriters. We wanted to highlight some of them.

MINIMUMS:  We want to substantially raise feature minimums, in large part to protect those who may not yet have the clout to earn above-scale fees.

STREAMING MINIMUMS:  We’re seeing the convergence of longform programs and theatrical films made for streaming (SVOD).  We need feature minimums to apply to all feature-length SVOD projects, whether they are contracted as made-for-SVOD or as a feature.

FEATURE TEAMS:  We seek to increase minimums for writers working in teams of two or three.  Health fund contributions for individual writers on teams of two currently cap out at $125K.  This leads to many screen team members struggling to keep their healthcare coverage while working on a project for more than a year.  It’s a similar problem for the pension plan – contributions for writers on teams cap out at a portion of what they would be if the writer worked alone.  We are proposing that the full pension & health benefit contribution cap (currently $250K) apply to each member of the team, rather than the lower ceiling that applies now.

PENSION & HEALTH CAPS:  We are proposing an increase in the contribution caps to $400K for both pension and health.  This would ensure that more writers receive the benefits they deserve for their work and could help writers on long-gestating projects avoid losing healthcare coverage.

COMPENSATION FOR REPEATED PITCHES:  Writers understand that crafting a pitch to get hired is part of the job.  However, with sweepstakes pitching, cherry-picking of ideas, and endless bake-offs, the pitch process can devolve into an unpaid months-long think tank.  We are proposing a two meeting rule: if a buyer asks for a second meeting to work on the pitch, this will trigger a guaranteed payment for the writer’s time and effort.

GUARANTEED 2ND STEP:  In the last decade, the proliferation of one-step deals has exacerbated free work abuses.  For screenwriters earning less than 200% of minimum, a second step should be guaranteed.  The reality is that most writers are already doing 2nd, 3rd and even 4th steps in their so-called one-step deals.  This is a low-cost solution that will help return the industry to better past practices.

PAYMENT STRUCTURE:  Unpaid producer passes and late payments are clear violations of the MBA, yet both are rampant.  These free passes often delay both the delivery of the completed script and the writer’s delivery check.  To address this and compensate writers throughout their employment on a project, this no-cost proposal would give the writer the choice of being paid on a weekly pro-rated basis instead of two lump sums.

FOREIGN BOX OFFICE RESIDUALS:  When residuals for feature films were first negotiated in 1960, the foreign box office was miniscule. Today, the foreign box office is three-quarters of the worldwide total. It’s long past time for screenwriters to share in the generated revenue and receive a foreign box office residual, just as writers do with foreign television.

Whether writing theatrical tentpoles, features for streamers, or indie passion projects, taken together these proposals would ensure screenwriters secure gains and protections they need and deserve in our ever-evolving feature film business.

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Since most U.S. movie theaters have shuttered in response to the coronavirus pandemic, studios are rushing out VOD home releases of movies that were only just in theaters.Disney/Warner Bros./Universal
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"Trolls World Tour"
The sequel to the 2017 animated hit announced it would be available for digital download on April 10 -- the same day it was supposed to land in theaters. Now it's a VOD exclusive.
Universal Pictures
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"Birds of Prey" 
The Margot Robbie spinoff of 2017's "Suicide Squad" debuted on demand on March 24. The film grossed $84 million since opening on Feb. 4.
Warner Bros.
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"The Hunt"
The Universal/Blumhouse horror film was first delayed from release last fall due to controversy over its violent content -- and then sidelined after its March 13 opening by the coronavirus. It's available to stream now.
Universal Pictures
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"The Invisible Man"
The Universal horror film starring Elisabeth Moss grossed nearly $65 million since its Feb. 26 release in theaters. It's available to stream now.
Universal Pictures
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"Emma."
Focus Features' adaptation of the Jane Austen novel opened in limited release Feb. 21 -- and picked up $10 million in ticket sales until the pandemic shut down theaters. It's available to stream now.
Focus Features
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"Bloodshot"
The Vin Diesel comic-book movie opened March 6 and grossed $10 million before theaters shut down. It's available on VOD now.
Sony Pictures
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"I Still Believe"
Lionsgate's biopic starring K.J. Apa as Christian music star Jeremy Camp hit VOD on March 27 -- just two weeks after it opened in theaters.
Lionsgate
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"The Way Back"
Warner Bros. released the Ben Affleck drama "The Way Back" -- which grossed $13 million in theaters since its March 6 opening -- on VOD less than three weeks later, on March 24.
Warner Bros.
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"Onward"
Disney and Pixar’s animated feature was made available for purchase on Friday, March 20, and the film hit Disney+ on April 3.
Disney/Pixar
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"Sonic the Hedgehog"
Paramount Pictures' "Sonic the Hedgehog" set a new record for video game adaptations with a $58 million domestic opening weekend on Feb. 14 and has grossed $306 million worldwide theatrically. It's available on demand now.
Paramount Pictures
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"The Call of the Wild"
20th Century Studios' feel-good film starring Harrison Ford and a giant CGI dog is available on demand now.
20th Century
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"Downhill"
Barely escaping an avalanche during a family ski vacation, a married couple (Julia Louis-Dreyfus and Will Ferrell) is thrown into disarray as they are forced to reevaluate their lives and how they feel about each other. It's available on demand now.
Fox Searchlight
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"Never Rarely Sometimes Always"
"Never Rarely Sometimes Always" is the story of two teenage cousins from rural Pennsylvania who journey to New York City to seek an abortion. The film premiered at the Sundance Film Festival and walked away with a Special Jury award. It's available for VOD on April 3.
Focus Features
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"Endings, Beginnings"
"Endings, Beginnings," a romantic drama from Drake Doremus starring Shailene Woodley, Sebastian Stan and Jamie Dornan, will open early on digital on April 17 and on demand on May 1. It was meant to open theatrically on May 1.
Samuel Goldwyn Films
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"To the Stars"
"To the Stars," a period drama set in 1960s Oklahoma that stars Kara Hayward, Liana Liberato, Jordana Spiro, Shea Whigham, Malin Akerman and Tony Hale, was bumped up to a digital release on April 24 and an on demand release on June 1. Martha Stephens directed the film that premiered at Sundance in 2019 and was meant to be released theatrically by Samuel Goldwyn Films.
Samuel Goldwyn Films
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"Impractical Jokers: The Movie"
truTV's first-ever feature-length film is arrived early on digital on April 1. Follow James "Murr" Murray, Brian "Q" Quinn, Joe Gatto, and Sal Vulvano, aka The Tenderloins, playing themselves in a fictional story of a humiliating high school mishap from the early '90s.
truTV
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"Artemis Fowl"
Disney's adaptation of the Eoin Colfer fantasy novel "Artemis Fowl" was meant to debut in theaters on May 29 but will now premiere exclusively on Disney+. The film is directed by Kenneth Branagh and stars Colin Farrell and Judi Dench.
Disney
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"The Infiltrators"
The theatrical release of Oscilloscope's docu-thriller "The Infiltrators" has been postponed, and the film will be released on both Cable On Demand and Digital Platforms starting June 2.
Oscilloscope
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"Working Man"
The March 27 theatrical release of "Working Man" has been canceled due to the theater closures, and the film will now premiere on May 5 via Video On Demand.
Brainstorm Media
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"Jump Shot: The Kenny Sailors Story"
"Jump Shot: The Kenny Sailors Story," a sports documentary executive produced by NBA star Steph Curry, will be made available for streaming on the new service Altavod between April 16-18 for $7.99 and is available for pre-order beginning April 9. 10% of all the proceeds will be donated to COVID-19 relief efforts. The documentary tells the story of the player, Kenny Sailors, who pioneered the jump shot, and it features interviews with Curry, Kevin Durant, Dirk Nowitzki, Clark Kellogg, Bobby Knight and more.
Photo by Rob Carr/Getty Images
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"Scoob!"
Warner Bros. announced on April 11 that it will release the family animated film “Scoob!” for digital ownership and premium video on-demand on May 15, making it the second film (after Universal's "Trolls World Tour") to cancel a planned theatrical release and head straight to home release pandemic.
Warner Bros.
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"The King of Staten Island"
"The King of Staten Island," the comedy starring and co-written by "SNL" star Pete Davidson and directed by Judd Apatow, will skip its theatrical release date of June 19 and open one week early on VOD everywhere on June 12.
Universal Pictures
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"The High Note"
"The High Note," the latest film from "Late Night" director Nisha Ganatra that stars Tracee Ellis Ross and Dakota Johnson, will now make its premiere on VOD on May 29. It was meant to open on May 8 theatrically.
Focus Features
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"Waiting for the Barbarians"
Ciro Guerra's film starring Mark Rylance, Johnny Depp and Robert Pattinson was originally slated for a theatrical release but was picked up by Samuel Goldwyn Films to instead be released via cable on demand and on digital in August
Samuel Goldwyn Films
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"Irresistible"
Jon Stewart's latest film, a political comedy called "Irresistible," will skip theaters and make its premiere online for on demand digital rental on June 26. The film from Focus Features stars Steve Carell and Rose Byrne and was meant to open in theaters on May 29.
Daniel McFadden / Focus Features
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