Netflix Only Paying Actors If Series Or Movie Becomes A Streaming Hit?
When you are a streaming and entertainment giant the size of Netflix, you can definitely start to make some of your own rules. They’ve done that through their long run, pivoting off the original DVD plan and becoming the biggest streaming service around.
Now, it looks like they are going to rewrite the rules again, this time around how actors, actresses, and other talent are paid for series or movies. If it goes through, there could be a major shift in how Hollywood does business.
Netflix Pitching Agents
At a Netflix event planned for Tuesday, it’s thought that the streaming giant planned on pitching agents and managers on a new pay structure for top talent going forward. All of Hollywood’s heavy-hitting agencies have been invited to an event called Netflix Explained.
It’s couched under the idea of more transparency from Netflix, though prevailing wisdom has it that the streamer will go forth with a new payment model aimed at really only paying big bucks if shows or series turn into hits, and not before.
Changing The Payment Structure
Part of the speculation around Netflix’s proposed payment plan for talent would involve asking them to reduce their upfront cost by 20% to 30%, for starters.
Now, the catch (or the upside) is that that number would effectively double if the show turned into a major hit for the streamer. The parameters of the latter aren’t, for right now, clearly defined (publicly at least), but it sounds like Netflix would pay talent significantly more than before on shows that became tentpole productions for the streamer.
And they would potentially be able to cut bait quicker on shows that didn’t work with less of a sunk cost associated with the series.
Lower The Floor, Raise The Ceiling?
Basically, Netflix’s payment plan for talent sounds like they want to lower the floor (considerably) and raise the ceiling (considerably) going forward. On its face, this would seem to make sense for Netflix, both in terms of business and bottom line.
Why pay a ton at the outset for something that is going to fall flat? Just backload the contracts in the event that some show or movie turns into a massive success.
Netflix Releasing Data
And because this Netflix event is labeled as all about “Transparency”, one can assume the streamer is planning on disclosing all of its data to agents (and probably everyone) in an effort to make sure it’s all above board. Netflix began taking this step in earnest back in December 2023 when it released viewing data on just about 100% of its catalog.
This marked a major move in transparency and also positioned the streamer as the Big Boss giant because the numbers effectively dwarfed everything else out there.
Time Will Tell
Will Netflix changing their pay rate remove the Hollywood middle class even more from the mix? It sure seems like it, though economically it’s hard to make the argument against this type of potential pay structure.
Time will tell what happens though those working on Netflix 2024 hits like Fool Me Once, The Gentleman Bridgerton, and Baby Reindeer, or past hits like Squid Game and Stranger Things would likely have loved this plan. Others? Maybe not so much.
Source: Deadline
