Evans: Lack of backend syndication in streaming drives up upfront talent costs
Benedict Evans · Netflix isn't a tech company · Apr 25, 2022 · at 31:55
Benedict Evans and Tony Cameron Brown discuss how streaming video platforms differ fundamentally from traditional Hollywood television economics and residuals.
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“The point is, traditional TV, there was syndication. Whereas we're streaming, there isn't. Netflix buys the show, and it's the show. And so, as a Performer or producer or writer, you get the money that you get, and that's it. You don't get a show at the back end. And indeed, for Netflix, there isn't really a back end, because how could you say, how could you attribute a particular piece of revenue to that particular show, and say, well, you know, you made this for us three years on, we're going to calculate how much money we made from it this year and give you that. Well, that's not how it works. That's not what Netflix is. So they couldn't say that show is worth this much money to us, really. And so that means as a performer, that means you want to get paid much more up front, which of course then fucks up the economics.”
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