In order to entice movie talent, such as actors, producers and filmmakers, to work with Netflix rather than other big projects, Netflix is choosing to change their compensation process for these players. Previously, they would pay the talent upfront for the work they did and also pay for the production costs. Bloomberg now states that the payment from Netflix will take into account how well a film does, and allow for bonuses depending upon that success.
This success can be gauged a couple of ways. One way would be to look at the number of people that streamed the video. The more there are, then the higher the potential bonus. The other way would be to compensate according to the number of awards the film wins. Again, the more, the higher the compensation.
Despite being the biggest paid online network in the world, Netflix is facing competition from competitors that are trying to increase their online presence. This creates even more competition for various types of film talent.
Disney is one of these networks. They are able to attract popular stars to their movies. In November, Disney will start their streaming services. They will be including projects from not just Disney, but also from Marvel, Star Wars, Nation Geographic, Pixar, as well as Fox. Apple TV is also coming up with content that is original and teaming up with big names like Oprah Winfrey and Steven Spielberg. Although Amazon Prime Video is not new, and has been streaming for a number of years, they are releasing a number of award winning projects for viewers. All of these create even more competition for Netflix.
Bloomberg accounts that in an attempt to give themselves a better chance of receiving accolades for their film projects; Netflix is increasing the release window for some of its films. Some movie theaters are having an issue with this time period and the rules they impose on the time they must show the movie before viewers can watch it online.
There has been some thought about changing the eligibility requirements for the Academy of Motion Picture Arts and Sciences. Steven Spielberg has brought up the thought the perhaps streaming services should be excluded from the Academy awards consideration.
