The Town with Matthew Belloni How Should Movie and TV Stars Be Paid?
Sep 30, 2024
In this discussion, Lucas Shaw, a Bloomberg reporter specializing in media and entertainment, dives into the evolving payment structures for Hollywood stars. He explores the shift from upfront buyouts to profit-sharing models and examines how these changes may affect both talent and studios. Lucas highlights the complexities of measuring viewer engagement as a basis for compensation, addressing the challenges of transparency in streaming platforms. He also announces results from the 2024 Concert Tour Draft, adding a fun twist to the conversation!
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Clooney and Pitt's Big Payday
- Apple paid George Clooney and Brad Pitt $35 million upfront for "Wolves."
- This buyout model, common in streaming, overpays talent to compensate for unpredictable success.
Why Buyouts Became Common
- Streamers use buyouts because they overpaid talent to lure them from traditional studios.
- The lack of traditional metrics like box office numbers and TV ratings made this necessary.
Shifting Compensation Models
- Netflix and others now aim to revert to a system of contingent compensation based on viewership.
- This means stars would earn more if their projects reach certain viewership milestones.
