Streaming Platform AppleTV+ Contemplates Actor Compensation Tied to Show's Viewership Count
Streaming giants like Apple, Amazon, and Netflix are primed to disrupt traditional entertainment industry pay structures with a fresh, performance-based compensation model. Essentially, this new concept suggests that actors, writers, and other creative talents could receive significant bonuses if their work generates a significant viewership on the company's platform. Conversely, their earnings could be less impressive if viewer numbers aren't as impressive.
According to Bloomberg, this proposed system would center on a points-based structure, handing out various bonuses based on factors like the number of new subscribers, viewer engagement, and cost-per-viewer. For instance, those with one of the top three shows could potentially bag up to $10.5 million for a single season.
The aim behind this performance-driven model is to foster a tighter bond between content quality and earnings. Presently, creators can be paid hefty sums before a single scene is filmed – a practice largely initiated by Netflix. As streaming companies strive to minimize expenses, they are now eyeing methods to derive maximum benefits with minimal expenditures.
Other streaming platforms, such as Amazon, are reportedly considering similar points systems. Nevertheless, this new compensation approach has stirred up a buzz in the entertainment industry, especially since it forms one of the contentious issues surrounding the recent Hollywood writer's strike. The strike, while it may have led to some renegotiations in the controversial compensation arrangements Characteristic of the streaming industry, writers still seems to be grappling with these changes.
There are, however, concerns regarding transparency and artist rights in this proposed new pay model. Streaming services are known to be secretive, and artists can often find themselves taken aback when a popular show gets axed without warning. Gizmodo reached out to Apple, Netflix, and Amazon for comment but did not receive an immediate response.
In terms of impact on talent and content creation, the new model could both invigorate and burden creators. On the one hand, it might propel them to churn out engaging content to elevate their viewership. On the other hand, they could experience stress and burnout if they feel compelled to meet performance expectations consistently. Moreover, there's a risk that creators might switch to formulaic content that appeals to broad audiences instead of embracing novel ideas.
Clear metrics, fair calculations, transparent royalty payments, content ownership, copyright protection, and piracy prevention are crucial elements that need to be addressed to ensure a balanced and ethical performance-based model. Netflix's current approach favors steady salaries and stock options instead of performance-based bonuses, generating debate about the potential benefits and drawbacks of either strategy.
- The tech giants, like Apple, are considering a performance-based compensation model that could revolutionize the future of the entertainment industry, as demonstrated by the points-based structure being contemplated.
- This fresh approach could result in substantial bonuses for actors, writers, and other creative talents if their work manages to attract a significant audience on the company's platform.
- On the contrary, if viewer numbers aren't impressive, earnings could be less impressive, reflecting the tech industry's desire to minimize expenses and derive maximum benefits.
- However, concerns about transparency and artist rights persist, as streaming services are known for their secrecy, leading to uncertainty and potential miscommunication with creators.
