Part 4/12:
Industry Profits vs. Writer Residuals
Producers and studios have pointed out that many have increased profits by tens of billions of dollars, often at the expense of writers' residuals and working conditions. Studios argue that their financial growth should translate into fairer compensation for writers, especially as residuals from legacy media like DVD sales diminish and royalties from streaming are inconsistent or minimal.
Yet, as streaming platforms are now facing financial struggles—canceling shows en masse to cut costs—the industry’s willingness to meet these demands is questionable. There's an inherent tension: writers seek more money in a context where profits are shrinking, and studios seek to cut costs amid declining revenues.