EXCLUSIVE: Netflix, Amazon and Hulu will be paying a lot more in writers’ residuals under the new WGA film and TV contract. New details, outlined by WGA West, reveal that high-budget shows they run will generate anywhere between $3,448-$34,637 more residuals per episode over the life of the three-year contract than they did under the old contract, depending on the platform and the length of the show.

The contract, which has been unanimously approved by the WGA West board and the WGA East council, now goes to the guilds’ members for final ratification. Voting begins tomorrow and concludes May 24. The old contract expired May 2.

The new residual formula includes, for services with 1 million or more subscribers in the U.S. and Canada, a domestic residual of 35% of an applicable minimum after 90 days of availability. Residuals will also be due for reuse on foreign-affiliated SVOD services. “In general,” the guild says, “if an HBSVOD program is available worldwide on the SVOD service, the residual payment will be a percent of the domestic residual (35% for each of the first three years, a declining percent thereafter). If the HBSVOD program is available in some foreign markets, but not worldwide, the residual will be 1.2% of the license fee for the foreign markets.”

The new contract also establishes new subscriber tiers, which determine the residual, for programs or episodes written under license agreements made on or after May 2, 2017. Current series or those with a license agreement made prior to May 2, 2017 will receive residuals under the formulas negotiated in 2011 or 2014.

Netflix, with more than 45 million domestic subscribers, will pay $19,058 more in residuals over three years for each episode of a half-hour high-budget show than it did under the old contract. Each episode of a high-budget one-hour show will generate an additional $34,637.

Amazon, with a domestic subscriber tier of 20 million-45 million, will pay $10,004 more in residuals over three years for each episode of a half-hour high-budget show than it did under the old contract, and $18,180 more for each episode of a high-budget one-hour show.

Hulu, with a domestic subscriber tier of 5 million-20 million – but no foreign subscribers – will pay $3,338 more in residuals over three years for each episode of a half-hour high-budget show than it did under the old contract, and $6,268 more for each episode of a high-budget one-hour show.

The chart below shows examples of residuals for the first three years of availability of episodes made for Netflix, Amazon and Hulu.

Half-Hour Episode

Platform Domestic Subscriber Tier New Domestic Residual New Foreign Residual New Total Residuals under 2014 MBA Gain
Netflix 45 million+ $20,121 $7,043 $27,164 $8,106 +$19,058
Amazon 20-45 million $13,414 $4,696 $18,110 $8,106 +$10,004
Hulu 5-20 million $8,718 $8,718 $5,270 +$3,448

 

One-Hour Episode

Platform Domestic Subscriber Tier New Domestic Residual New Foreign Residual New Total Residuals under 2014 MBA Gain
Netflix 45 million+ $36,571 $12,800 $49,371 $14,734 +$34,637
Amazon 20-45 million $24,380 $8,534 $32,914 $14,734 +$18,180
Hulu 5-20 million $15,846 $15,846 $9,578 +$6,268