That's exactly what it is.The Showrunner is right to be pissed, it sounds like its another Disney scam to not pay residuals.
David Zaslav normalized this kind of incredibly crappy behaviour by making it a major part of his demented changes to HBO, where he's pivoting a high-quality fiction TV brand to trash-tier reality TV. He's a real piece of work.
Anyway, before he did that, this was seen as beyond the pale, for the most part, it happened, but usually only to very obscure shows. Now he's done it, and didn't suffer for it, Disney and others are seeing it as an opportunity. The costs they're cutting aren't particularly large, but they do add up. I think in the longer-term it's going to backfire quite badly for them, but in the short term I'm sure it'll please shareholders, who are the only people who really matter to companies like this.