Netflix to Pay Bonuses to Talent When Movies Are A Success

Ted Sarandos Netflix

LOS ANGELES - MAY 6: Ted Sarandos, Dave Chappelle at the Netflix FYSEE Kick-Off Event at Raleigh Studios on May 6, 2018 in Los Angeles, CA - Image (Kathy Hutchins /

Netflix is planning to pay bonuses to talent if their movie is a success

As we previously reported, the streaming wars are changing the way Hollywood negotiates deals with talent. Now, Netflix is planning to pay bonuses to filmmakers when productions are a hit.

According to Bloomberg, Netflix is planning to pay actors, filmmakers, and producers a bonus if their films are successful. The monetary incentive is new and directed at landing projects that may otherwise go to Netflix’s competitors.

But it begs the question - what is considered a successful project on Netflix. Bloomberg suggests it could range from project to project, but there may be an incentive if a production wins an awards or how many viewers the production has.

Bonuses are a new business model for Netflix, which typically rewarded talent with upfront deals. But, bonuses are also different than Hollywood’s traditional “back-end” deals, where filmmakers receive residuals based on the success of the movie. Since Netflix’s films don’t usually get released in theaters, there is no way for their films to receive those deals mentioned above.

Netflix covers the cost of production and pays producers money on top of that, granting them a profit even before the project hits the platform. These deals are safer for talent. The producer is guaranteed to make money, but there is a limit to their profit.

As Netflix faces more competition for projects than ever before, it is getting harder for the streaming company to lure talent and out-compete their rivals. It does not offer the kind of deals other studios provide their talent. For example, Robert Downey Jr. received millions for his role in “Iron Man” and other Marvel movies.

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