Bloomberg reporter Lucas Shaw joins the host to discuss the shift in Hollywood pay structures towards performance-based compensation on streaming platforms like Netflix and Apple. They debate the reasons behind this change, potential transparency issues, and the feasibility of this new model. The episode also includes predictions about Kevin Costner's 'Horizon: An American Saga' and Francis Ford Coppola's 'Megalopolis'.
Streamers like Netflix are shifting towards aligning pay with performance to balance production costs.
Transparency issues arise as talent may lack visibility into metrics determining pay for success.
Deep dives
Changing Payment Models in Hollywood
Payment structures in Hollywood are evolving as streamers like Netflix, Apple, and Amazon seek to better align pay with performance. Traditionally, talent received large upfront payments that bought out their rights to future revenues, but this model is shifting towards bonuses or revenue cuts for success. This change aims to bring down production costs, leading to discussions on how to balance upfront pay with long-term success rewards, causing concern among talent agencies.
Transparency and Payment in Success
The evolving payment model in Hollywood raises transparency issues as talent may not have clear insights into the metrics determining their pay for success. Streamers like Apple propose bonuses based on metrics like viewership and show performance without full visibility for talent. This lack of transparency pushes against the industry norm, but the trend towards more openness due to advertising may herald a shift in how payment for success is calculated.
Navigating the Talent Compensation Landscape
Talent agencies face challenges in navigating the changing compensation landscape, balancing upfront payments with bonuses for success. Negotiations between talent and streamers may impact the inclusivity of the compensation model and the potential for long-term earnings. Stakeholders aim to avoid discrepancies in pay and ensure fair compensation structures that drive quality content creation.
Predictions for Hollywood Compensation Model Evolution
The future of Hollywood's compensation model may see further experimentation and adaptations as streamers seek a balance between upfront payments and success bonuses. With a shift towards a buyer's market, talent agencies need to strategically navigate the evolving landscape to secure fair deals for their clients. The industry anticipates gradual changes and potential innovations in payment structures over time.
Matt is joined by Bloomberg’s Lucas Shaw to discuss why Netflix, Apple, and other streaming platforms are looking to change how they pay actors (03:25). After years of paying big up-front checks with no back end, streamers are looking to balance out their ballooning budgets by better aligning pay with performance. They debate why this change is happening now, how advertisements on these platforms could bring about more transparency, and whether this new model could actually work. Matt finishes the show with predictions on Kevin Costner’s ‘Horizon: An American Saga’ and Francis Ford Coppola’s ‘Megalopolis’ (24:36).
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