'Suits' Was Streamed For 3 Billion Minutes on Netflix and the Writers Were Collectively Paid $3,000

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

https://nofilmschool.com/suits-residuals

'Suits' Was Streamed For 3 Billion Minutes on Netflix and the Writers Were Collectively Paid $3,000

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

No Film School
"It's Free Money" ~ Studio Executives
Didn’t the writers get paid a salary during the production?

yes, they sure did, but not enough, because at the time they accepted their last labor agreement, they were being paid when the studios and producers were selling their work on in other distribution avenues covered by that agreement, and now they studios are selling them on in other avenues of distribution which weren't covered by that agreement, and aren't compensating them for it.

It's really not that difficult of a concept. It's all in the employment agreement you work under.

Sounds like there just needs to be a part of the agreement that states that any new future avenue pay x amount or renegotiate. Doesn’t seem that hard.
Hence the strike.
Hence the strike I guess

Well hell! What's the strike all about when this person figured it all out?

What's that, you say? Greedy capitalists are greedy?

Have you thought about ther needs? What if they need a new yacht or private jet? They only made a hundreds of millions of dollars last year. Only tens of thousands of dollars a day. How are they supposed to live in that salary?
It sure doesn't. It's not difficult, only expensive, and expenses studio executives would rather stay in their own pockets, forever, which is why they're striking.
I can get behind fair wages, but I don’t understand residuals. You were paid to do a job, but you also expect a cut of whatever future revenue it might achieve?
If you don't understand residuals, like owning stocks, which continue to pay out on future worth through dividends, when their values go up, I'd suggest you pick up a book.
I mean why not? If your labour helped create the thing, and it’s still generating value, why not receive a share of the value? Especially when higher up execs who might not have even worked on it at all are making bank from it.

You were paid to do a job, but you also expect a cut of whatever future revenue it might achieve?

If it’s in the contract then yes.

If you’re wondering why it’s in the contract, this is very common in lots of different business types.

Up front, there may not be a desire to make a huge investment. What if isn’t a success? So you tell whoever is making , “hey, we’ll pay you measely dollars now to make it, and pay you percent of money that comes in for it down the road.” This way you can invest a smaller amount up front ensuring the thing gets made, but everyone involved gets a cut based on the future success.

Since the success/amount made isn’t determined in a one-time deal, you pay out the shares of the success over time: aka residuals.

I get why this is something that comes to mind but the idea is changing the way things are done to pay the labour more of the value of the product they produce.
It’s basically just updating their agreement to work with streaming and other new avenues to make it the same way it worked for them on network TV before.

What a weird measure of time for a show. It’s not a song. Why not use something more suitable, like views?

Edit: it’s 50 million hours. If each episode is about an hour long, then that’s about 50 million views. If there are 10 episodes per season, then that’s 5 million viewers per season.

It’s semantics, but the equivalent for a song would be plays. I think the problem with using views or plays for a metric like this is that they don’t account for people that take in the entire piece of media. It considers people that accidentally click an episode and then close it after some seconds, and people who watch an episode from start to finish, to be the same. One of those people are going to see a lot more ads than the other, thus making the company more money. Just my hypothesis tho.
in case you weren’t paying attention, musicians get paid shit too
I wasn’t implying they get paid better. The comparison to views vs plays was done to address the “It’s not a song” comment. How did you get that implication from my message?
“suitable” ha

Warning: unpopular opinion here.

From the article:

That means that despite the show being a resurgent hit, there were no big secondary payouts.

So, I am an engineer/scientist. Products that I have developed/contributed to development are used by billions of people. Most likely you, the reader of this comment are using it right now, because some of the products I worked on are telecom products, that are widely used to transfer information.

The amount of secondary payouts I receive is EXACTLY ZERO.

My honest question is, why those writers should be any different? They should be paid when they make their products, according to the contract they signed. But why many think they entitled to something more?

And no, I do not think that argument "but it is difficult work, it is not constant" works here. There are lots of difficult, non-constant, seasonal, whatever jobs there that pay even less.

You get what you demand, and what you bargain for, which is why they are now on strike. You valued your knowledge, experience, and expertise in telcom, in different ways, and less over the long term, than workers in the entertainment industry, who, for the majority of the entertainment industry's existence, have been taken advantage of by the producers of that entertainment. You decided to work for a salary and benefits, and got yours upfront, their industry works a different way as a result of historically predatory entertainment industry practices.

Crab in a bucket mentality.

“I don’t receive residuals, so why should these writers? The executives are entitled to all the profit.”

Not very smart for an engineer
You don’t have to be smart to be an engineer. Just resourceful.
Yep. My team is composed of brilliant engineers who lack common sense, and average engineers who might not have a deep level of mastery who keep them in check. It’s a working system.
I work in machining. The amount of drawing I've received from engineers that could not be machined makes me question the intelligence required to become an engineer.
I’m an engineer that makes those drawings and I can’t dispute this at all.

@pbkoden @iAmTheTot

I used to be a mechanic and I agree as well.

If all us engineers got paid every time our code was used, the Internet as it exists would be absurdly expensive. Really, it couldn’t exist. Thank god engineers don’t have the same “I need to be paid every time something I created is used by anybody” mentality. You’re building on the work of millions of people before you, you owe it to others to contribute (and make a living in the process).

Of course, the industries are different in important ways. But you should be able to explain the differences, not just wave them away with “ur just jelly lol”

IMHO, copyright and IP law is ridiculously protective. People should get a few years to benefit from their creations, then they should be public domain. This lifetime-plus-70-years bullshit is stupid. Companies are exploiting those stupid laws to milk us on every platform for decades with each media artifact, and artists and writers just want to get a cut of the action. IMHO, it’s the wrong fight, and I can’t really support them in it: “give writers a share of the rent you milk from us” is not a cause I wanna get behind.

But the sales and marketing morons deserve to be paid for everything, of course!

No, they shouldn’t be profiting from rent on IP any more than anybody else does. The government should make some major changes to intellectual property law to stop that.

Anyway…do sales & marketing people get paid an unreasonable amount? Are they rolling in cash while writers suffer? Seems to me that most the marketing people I’ve met in my life were just getting along like everybody else. They don’t seem like the right people to be angry at.

You worked in a shitty industry, I’m in the valley and the marketing guys make top bank, I was a Sr principal at one of the biggies and they blow me out of the water.

Sales is often on a different level, commission is incredible.

Where do you think the money is going?

I was reading a book on this recently and it had a good reason for why some departments get all the money and some don’t. Imagine you have a market that is saturated with products. In that case, sales is what brings in the most money, so they have the most power and get paid accordingly. Now imagine a post-war booming economy where every car made gets sold. Sales and engineering performance are not that important, but financial departments grew immensely, because the competition was on optimizing, cost-cutting and consolidation. Last example: new industry, still figuring out the best methods, products and killer apps: engineering has the most power. Given the economy we’re in right now, where money is tight, new products outside the AI hype/boom are going to be companies fighting to sell you their product, so marketing is winning right now, but it may change.

Easier answer: social skills + their whole job is ass-kissing, they get very good at it.

Imagine how good engineers could be if they didn’t have to waste all their time doing actual work.

Yes, that same book also talked about how success and pay is only 5% performance and the rest is self promotion and sucking up…that helps put a lot of life in perspective

The estimated total pay for a Marketing Executive at Walt Disney Company is $106,208 per year.

glassdoor.com/…/Walt-Disney-Company-Marketing-Exe…

The estimated total pay for a Writer at Walt Disney Company is $69,619 per year. This number represents the median, which is the midpoint of the ranges

glassdoor.com/…/Walt-Disney-Company-Writer-Salari…

Disney pays higher than average. Writers can get paid a hell of a lot less. And it’s often only a part-time job that lasts only a few weeks or months a year.

So yeah, I’d say the marketing executives get paid an unreasonable amount compared to the writers who actually make a huge contribution to creating the product.

Copyright law is ridiculously protective. You can thank Disney, the corporation, for that. The original law said 30 years. That was enough for the creator to make a career being creative. Micky would look a whole lot different by this point.

I guess it depends right? If a show or movie or other piece of art continues to bring income in, where does that money go? Particularly when the team that created it have effected disbanded and therefore aren’t technically on the same payroll that income is arriving on. I would argue it should not solely go to the owners of that production house.

Residuals makes sense in a way that doesn’t really apply to engineering because typically engineers will remain at a company and their continued employment is how they continue to gain income from their work.

You could maybe say an actual equivalent would be engineers getting shares in their company, which would function the same as residuals. I think that is a more apt comparison.

I think the shares in a company thing is a good comparison, because I went to university at a place that churns out a lot of grads who found or work for startups. It’s a minefield because often the reason early employees get paid in partly in shares is because they couldn’t afford to pay them the “true amount” upfront.

Why shouldn’t we, as engineers, be entitled to a small percentage of the profits that are generated by our code? Why are the shareholders entitled to it instead?

I worked in Hollywood before becoming a programmer, and even as a low level worker, IATSE still got residuals from union shows that went to our healthcare and pension funds. My healthcare was 100% covered by that fund for a top-of-the-line plan, and I got contributions to both a pension AND a 401K that were ON TOP of my base pay rather than deducted from it.

Lastly, we were paid hourly, which means overtime, but also had a weekly minimum. Mine was 50 hours. So if I was asked to work at all during a week I was entitled to 50 hours of pay unless I chose to take days off myself.

Unions fucking rock and software engineers work in a field that is making historic profits off of our labor. We deserve a piece of that.

You should also be paid more, you have been instrumental in creating billions in wealth for people who cannot do what you can do, you should get more.

As the other poster stated, you get what you negotiate for. If you don’t negotiate for those secondary payments then you don’t get them. It’s right to argue when it’s “right or wrong” for those payments but you can argue whether it’s fair.

The corporations take on the risk but when it pays the payout isn’t fairly distributed. It unfairly goes to the top players who didn’t take any risk on because they are seperate from the corporation.

Also just because you don’t get any doesn’t mean nobody else should. You can try and negotiate that with your employer if you want. If you keep that mentality then you’re only bringing everyone else down to your level. We should be elevating each other. That mentality is just jealousy and it will keep you where you are.

Sure, but when the risks the capital takes are so low & long-term as in showbusiness (everything got consolidated af), and the payouts so huge compared to cost (especially excluding like top 5 most payed ppl on the project) … you might think that the negotiations weren’t made fairly in equal grounds.

Otherwise, if there were meaningful risks, the corps would have no problem sharing (=lowering) that risk at least with immediate stakeholders/workers. I bet most writers would take minimal or no pay to get in on the profits (that can last decades). Most writers work on several projects a year so so if business risks would be actually important, lowering them would be a win-win scenario.

I don’t have an answer but I don’t necessarily agree either. However I updooted because it’s interesting discussion and you were nice about it.
You , I like your positive attitude

Ooh boy you’re gonna get the “anyone rich is evil give me free stuff because you have more” mob all animated.

But you’re right. They have a contracted rate to do a job (good or bad, fair or not). It makes for a flashy headline to say “look what the downstream revenue was”.

Instead of making up a scenario in your head and then getting riled up over it, why don’t you read the level headed and educated responses that have been written?

Only 14% of SAG members made enough money this year to get health insurance. Similar is true for the WGA. The low income economy that industry is fueled by only ever worked because of the residual system.

Okay you weren’t picked for any shows the past three months but that’s okay because your residuals cover rent and health insurance.

Not anymore, because the streamers refuse to pay residuals.

You couldn’t make a less informed comment about this affair if you tried, really. There was an existing system, companies took advantage of a loophole in that system to profit more and give execs massive pay days whilst giving the people who did all the work nothing, and now the people who did all the work are refusing to work until they get paid again.

I don’t know what people like you are hoping to achieve here other than demonstrate a profound level of dumbassary.

Like others have said, this is the wrong mentality. Instead of asking “why should they get it when I don’t?”, You should simply be asking “why don’t I get it?”

Turning us against each other is how the ruling elite stay in power. 💪

What's he's saying is those ruling class shouldn't be getting it either because it's a silly concept lol.

Road crews don't get paid from tolls. Power plants don't get paid beaucoup. Etc. Etc.

The root issue is the company profiting endlessly or simply not paying appropriate wages. IP law absolutely needs to change.

Melancholy Elephants is a great Hugo Award winning short story about this train of thought.

Spider Robinson: Melancholy Elephants

This is the right answer! I agree that this is the point

Bootlicker spotted...

Don't ask why they should be getting pay pay outs.... Ask why you aren't!

My honest question is, why those writers should be any different?

So I am also an engineer. Products that I have developed/contributed to development are used by millions of people. (I’m being a bit cheeky here by copying you, but this is true of me too.)

The compensation packages of engineers are wildly different than that of writers because our jobs are steady.

The compensation structure of writers is designed to carry them between shows when they are not making any money. They also need excess cash to fund retirement savings, insurance, and other benefits because they are unemployed for long and unpredictable stretches.

The residuals system was designed to address this very specific structure of the writing profession. As engineers, we don’t have these wildly unsteady employment schedules, so the residuals system is not warranted in our profession.

Your experience as an engineer/scientist is valid, but you have to understand how wildly different writing is as a career path, and how compensation packages are different out of necessity.

And no, I do not think that argument “but it is difficult work, it is not constant” works here. There are lots of difficult, non-constant, seasonal, whatever jobs there that pay even less.

Sure, industries like retail, tourism, and food service have similar weaknesses, but those industries are unskilled. Writing is highly skilled labor. WGA members are responsible for writing the most valuable media on the planet, American film and television.

The distinction between writing and these other industries can be measured in dollars.

Sure, industries like retail, tourism, and food service have similar weaknesses, but those industries are unskilled.

I understand what you are trying to say, but no they really aren’t. They require a very different skill set than being an engineer or a doctor, but I guarantee that you do not have the skills that I do with knives, playing with fire, and making knives. I know this because an engineer doesn’t have the time to spend 20 years working as a cook/chef, and 2 as an apprentice blacksmith. That being said, I’m useless if you hand me math above pre-calculus. I can remember algebra and pre-calc, but I don’t remember calculus any more.

There’s no job that is “easy.” In all actuality the lower the pay, the harder the job is to do. There are very few exceptions to this rule.

Smithing is definitely skilled labor. It’s the classic example of an artisan.

But work in most of the food service industry (front and back) is unskilled. And by “most” I mean things like fast food, cafeterias, diners, chain restaurants etc. In all of these cases, you can hire Joe Shmoe off the street to wait tables.

Fine dining is a special case. Obviously you need significant skill/training to be the chef at a Michelin star restaurant, for example.

And I’m not saying that unskilled labor is easy. It’s not. I spent a decade in food service as an unskilled laborer (mostly fast food and cafeterias). It’s exhausting and difficult. And I’m not saying that unskilled labor is undeserving of a living wage. What I am saying is that the labor pool for unskilled work is much much larger, so it’s near impossible for that kind of worker to demand residuals or equity in the same way as an engineer or screen writer.

They could if they unionized more probably.

Who is getting money from your work? Do they deserve it? More than you?

Having the good fortune to have money earlier shouldn’t entitle someone to more money later. Investors are important, but shouldn’t be allowed to have all of the benefit.

I think you’re missing a detail here, which is that before streaming was a thing writers would make significant amounts of their money by getting a show syndicated on a network, that was the whole deal. Streaming is being treated differently, effectively resulting in then receiving a very large pay cut because even if they make a successful show the payout doesn’t come.

And it’s true they could structure things so that they don’t receive a secondary payout, but their base salary was negotiated with that later payout in mind. You and I don’t receive secondary payouts for our work, but our salary is also adjusted to recognize that.

Well what jobs are you thinking about?

  • farmhand fits your description, but they pay less because they don't need skilled workers, anybody with a working body can do it. Can't just drag in a random guy to do your writing, acting, or VFX.