New Payment Plans to be Discussed with Agents and Managers

SPECIAL:The issue of how major publishers pay their actors has been one of the most talked about topics in Hollywood over the past few months.

Netflix The publisher is set to hold a presentation for senior agents and executives, which is likely to address the issue, as it is understood the publisher will reassess how it structures its deals going forward.

We’re hearing that representatives from WME, CAA, UTA Verve, other agencies, and some major management companies will be attending a breakfast event called Netflix Explained tomorrow morning at the Tudum Theater.

In what was billed as an event to give talent agents a better understanding of how Netflix operates, agents and managers are looking for more transparency into how the streamer pays its talent.

While the topic of streaming payment models is not officially on the presentation agenda, sources say it will be brought up in the presentation, which we learned will be held by Chief Content Officer Bela Bajaria, Chief Marketing Officer Marian Lee, and Title Merchandising Director Olivia De Carlo.

Essentially, the broadcaster is considering a new way to pay talent, rewarding them for creating hits rather than relying on a cost-plus model in which stars, including top directors, receive large sums of money upfront and little in the way of back-end returns.

One of the issues that could be discussed is Netflix requesting a 20-30% discount on the salaries of talented people who create a successful production or film, and in return Netflix offering double the amount of additional payment to the producers if the production or film is successful, in addition to the other bonuses included in the package.

What has apparently not yet been discussed or considered is a change to Netflix’s rights status so that these stars and directors can own their own intellectual property after a certain period of time.

This all comes just days after Netflix released the latest tranche of data from its semi-annual engagement report, which found that more than 94 billion hours of content were watched on the service in the first half of 2024.

The report highlighted the success of shows such as: Cheat on Me Once, Bridgerton And Baby Reindeer, Gentleman And Avatar: The Last Airbender and also movies like: Girl And To pick up and special products such as: Roasting Tom Brady.

That transparency is crucial for the town if it’s going to get deals done in a new way. Netflix has led the way in providing data on its own shows compared to many of its rivals.

Netflix is ​​entering a “real adjustment phase,” a source told Deadline, and every step toward a new payment model is a “work in progress.”

Netflix declined to comment.