Netflix & WGGB agree UK writers fees, shifting away from rights in perpetuity

Bank Of Dave (Source: Netflix)

Netflix has struck its first deal with The Writers Guild of Great Britain (WGGB) in a move that will see its members shifting away from granting rights in perpetuity.

The agreement between the global streamer, the WGGB and agent union the Personal Managers’ Association (PMA) means writers of singles and one-offs will receive a minimum script fee of £17,000 ($21,750) while those working on series and serials are due £15,000 per episode (based on an approximate run time of 60 minutes).

Anne Mensah

The deal applies to live-action scripted drama written in the UK for initial exploitation on Netflix, with the initial script fee including a six-month window of exploitation on Netflix worldwide, as well as and non-theatric and promotional rights.

It comes as Netflix continues to inject considerable spending into UK-based projects, with the streamer revealing last year that it expected to have spent around $6bn in the country to the end of 2023.

Its output ranges from One Day, The Crown and Sex Education to series such as Black Doves, Department Q and Bank Of Dave: The Sequel – a follow-up to the feature film Bank Of Dave.

Netflix’s ‘Subsequent Use’ deal in UK

The WGGB deal will also provide writers with minimum rates of remuneration for a period of up to 15 years via a Subsequent Use Advance (SUA) clause.

It means a mandatory rate of 125% of the agreed script fee is to be paid to the credited writer(s) of the episode on the first day of principal photography.

Together with the script fee covering the initial six months, the 125% SUA pre-purchases 10 years of exhibition on the Netflix service (i.e. SUA purchases 9 years and 6 months).

Alternatively, part of the 125% SUA can, at Netflix’s discretion, pre-purchase fewer than 9.5 years with the remainder set against future royalties from exploitation on non-Netflix services and/or Netflix exploitation at a later date.

If fewer years are pre-purchased, the agreement details the agreed value per year and % SUA available to be allocated to
other markets.

The WGGB said that Netflix rights can also be extended at any time (including by SUA pre-purchase) for an additional fee of 3% of the agreed script fee per year after 10 years, or 1% of the agreed script fee per year after 15 years.

Sex Education (Source: Netflix)

If a production is exploited off the Netflix service, the writer(s) will be entitled to 5.6% of the gross receipts, on a pro-rata basis per writer, per episode.

Ellie Peers, WGGB general secretary added: “For the first time in the UK, writers working for a global streamer will have their rights enshrined in a collective trade union agreement and will enjoy improved terms and conditions.”

Anne Mensah, VP of UK content at Netflix, said: “Local writers are core to Netflix’s success in the UK and we are delighted to have reached a deal.”

A PMA statement read: “:We are thrilled to have finally agreed a trailblazing deal on terms for UK writers that moves away from granting rights in perpetuity and introduces a structure for ongoing payments.”

A summary of key terms can be found in the Rates and Agreements section of the WGGB’s website.