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1 month ago
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The issue of evolving compensation models across the streaming landscape continues to rumble on.
Netflix Co-CEO Ted Sarandos reiterated claims by Chief Content Officer Bela Bajaria earlier this month that the streamer is not looking to change the way that it pays talent.
However, Sarandos said that it was “open to more bespoke deals” but this rarely happens because “typically the talent chooses the upfront model”.
Sarandos is basically putting the ball back in talents’ court (and, of course, that of their agents), suggesting that its stars want to continue working in the cost-plus model that Netflix “pioneered” rather than betting on their own success.
“We like our model, and talent likes our model. It’s so much more impactful for our business if we can make our films, our shows, just a little bit better, it’s so much more impactful than making them a little bit cheaper,” he said on the company’s Q3 financials call.
“Bela said this very clearly a couple of weeks ago to all the talent agencies: we’re not changing our compensation structure. Paying upfront, something that Netflix actually pioneered, benefits creators, and it benefits Netflix. So, for creators, Netflix takes all the financial risks so that they can focus on making the best possible version of what they’re working on. For Netflix, that model enables us to attract the best talent in the world. Now, with all that said, we have been and we continue to be, and we are open to more bespoke deals where talent is interested. Now they rarely happen, because typically the talent chooses the upfront model. So, we think that we have the right model and we are not looking to change it,” he added.
All of this comes after a meeting at Netflix HQ, attended by a group of top agents and managers, where many expected to, or were at least hopeful of, hearing about a new payment model, one that particularly incentivizes rights ownership and back-end deals.
