TV's New Math: What if $100M Netflix Deals Actually Shortchange Creators?

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  • TV's New Math: What if $100M Netflix Deals Actually Shortchange Creators?

    Some of you may find this interesting, hopefully I posted it in the right place.

    https://www.hollywoodreporter.com/ne...eators-1203846

  • #2
    Re: TV's New Math: What if $100M Netflix Deals Actually Shortchange Creators?

    i read this, and it's crazy how much money Netflix is paying to secure these big showrunners. i understand the need to pay a creative up front for a back end that they won't receive because of the difference in format between network TV, cable and streaming, but damn $400 million? do creatives really make that much over time? because of repeats and syndication?

    my ears pricked when they talked about how long Netflix runs a series and have seen people recently complaining that favorite shows get canceled and there was an interesting line in the article...

    "The catch? Most shows aren't going to last that long. "They're often cutting these shows off before the backend asymptote really hits," says talent lawyer Lev Ginsburg, who notes that many believe a key factor in the streamers' cancellation decisions is the fact that the financial outlook becomes much more talent-friendly the longer shows go. Plus, shorter runs mean fewer opportunities to renegotiate, another frustration for reps."

    and this...

    At Netflix, such long-running shows as House of Cards and Orange Is the New Black have become anomalies, and at least one source says he has heard anecdotal evidence of internal analytics that suggest the streamer doesn't gain any additional subscribers when a show goes beyond two seasons. "No one is sitting there going, 'Ah man, I can't wait for Lost in Space to come back on.' It's one of 500 boxes on that screen, and when they pay $130 million to put 10 more episodes up, all that happens is there are 10 more episodes behind that box," says one insider.
    that's a very interesting thing to learn and understand. maybe i'm an anomaly, but i have HBO solely for Game of Thrones. i like other shows like John Oliver's Last Week Tonight, and Real Time with Bill Maher, but that's about it.

    it sucks for the small guys that would love to sell something to Netflix, because it looks like they're TV is going to be dedicated to the shows these big showrunners are going to be creating.

    but then again, maybe it will open the door for new talent to replace them on Network TV and cable? i don't know, but it's interesting to think about.

    anyone else read it?
    "Arguing that you don't care about the right to privacy b/c you have nothing to hide is no different than saying you don't care about free speech because you have nothing to say." -- Edward Snowden

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    • #3
      Re: TV's New Math: What if $100M Netflix Deals Actually Shortchange Creators?

      Originally posted by finalact4 View Post
      i read this, and it's crazy how much money Netflix is paying to secure these big showrunners. i understand the need to pay a creative up front for a back end that they won't receive because of the difference in format between network TV, cable and streaming, but damn $400 million? do creatives really make that much over time? because of repeats and syndication?

      my ears pricked when they talked about how long Netflix runs a series and have seen people recently complaining that favorite shows get canceled and there was an interesting line in the article...



      that's a very interesting thing to learn and understand. maybe i'm an anomaly, but i have HBO solely for Game of Thrones. i like other shows like John Oliver's Last Week Tonight, and Real Time with Bill Maher, but that's about it.

      it sucks for the small guys that would love to sell something to Netflix, because it looks like they're TV is going to be dedicated to the shows these big showrunners are going to be creating.

      but then again, maybe it will open the door for new talent to replace them on Network TV and cable? i don't know, but it's interesting to think about.

      anyone else read it?
      Those quotes make me feel like streaming services are going to see the same pressures that Hollywood studios have faced in the last 20 years: they are trying to dole out big money for sure things, and will ultimately become more risk-averse in the process.

      The other problem with these big upfront deals is you wonder how much the studios end up stuck with sunk costs. Like if those creatives' shows bomb, are they just going to stick with them, because otherwise they look like idiots?

      One of the best things about Netflix was that it let shows breathe and rescued other cancelled ones... if that dynamic changes it will hurt both creatives and fans.

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      • #4
        Re: TV's New Math: What if $100M Netflix Deals Actually Shortchange Creators?

        apologies, Iceman, i wasn't completely clear.

        both quotes are referencing what Netflix is doing. with these big upfront deals the longer a show stays active on Netflix the better the creative does, but it's not good for Netflix. adding a new series gets Netflix what they want, new subscribers. i think it said after a couple season, a show doesn't draw new subscribers.

        but if they cancel a show, even if it's successful, it's better for Netflix because the creative, due to their contract, has to create a new show that will hopefully and more likely, gain them new subscribers. so the prediction is that early cancellation may occur for that reason.

        the reason for the large upfront monies is to lure the creative away from the standard studio/network deal where if a show runs for several years and gets syndicated, think Friends, the create would have a lifetime of payments rolling in.

        so, if i was unclear, again, my apologies.
        "Arguing that you don't care about the right to privacy b/c you have nothing to hide is no different than saying you don't care about free speech because you have nothing to say." -- Edward Snowden

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