EXCLUSIVE: The topic of how the major streamers pay talent has been one of the dominant conversations in Hollywood over the past few months.
Netflix is holding an event for top agents and managers where it will likely be discussed as the streamer is understood to be reevaluating how it structures its deals going forward.
We hear that reps for WME, CAA and UTA as well as a number of the large management companies are heading to a breakfast event – titled Netflix Explained – at the Tudum Theater tomorrow morning.
Billed as an event aimed at providing talent representatives with better understanding how Netflix operates, agents and managers are expecting information about more transparency on how the streamer pays their talent.
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While the subject of streaming pay models is not officially on the agenda for the presentation, which we understand will be given by Chief Content Officer Bela Bajaria, Chief Marketing Officer Marian Lee and Olivia De Carlo, who is Director of Title Merchandising, sources tell Deadline that it will be brought up.
Essentially, the streamer is considering a new way to pay talent, rewarding them for creating hits, rather than relying on the cost-plus model that sees stars, including top directors, get paid a big number upfront with little back-end.
One of the considerations that could be on the table is Netflix asking top talent to reduce their fees by between 20-30%, in exchange for giving them twice that amount on the back-end if the show or movie is successful, on top of other bonuses that are already part of Netflix’s package.
What apparently is not yet under discussion or consideration is a change in Netflix’s rights situation so these stars and auteurs can eventually own their own IP after a certain period.
This all comes days after Netflix released its latest tranche of data around its semi-annual engagement report, which saw over 94B hours of content watched on the service in the first half of 2024.
That report highlighted the success of shows such as Fool Me Once, Bridgerton and Baby Reindeer, The Gentleman and Avatar: The Last Airbender as well as movies such as Damsel and Lift and specials such as The Roast of Tom Brady.
This transparency is key for the town if deals are to be struck in a new way. Netflix has led the way in offering data on its own shows compared to many of its rivals.
As one source told Deadline Netlix is moving into a “real adjustment phase” and any movement towards a new payment model is a “work in progress”.
Netflix declined to comment.
The post Netflix To Pitch Top Agents, Managers On Transparency At Event Tuesday; Talent Payment Proposal Expected To Be Discussed appeared first on Deadline.
