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I often wondered this. I don't believe it does. My guess is that royalties are paid on a per-use basis. Anyone know?
by e40 9y ago
I often wondered this. I don't believe it does. My guess is that royalties are paid on a per-use basis. Anyone know?
- bpodgursky 9y agoI really doubt there is any per-view payout. There would be no point in their constant content churn if they were able (or wanted to) negotiate per-view contracts.
- Fizzer 9y agoThe view numbers surely get used during contract negotiations, though. When a movie's contract runs out and Netflix needs to figure out how much they're willing to bid to renew it, they'll look at the view numbers as one factor in determining how much they're willing to bid. So even if there isn't a per-view payout, I'm sure the view numbers do contribute to the studio getting more money.
- jdmichal 9y agoMy complete guess: Netflix mass-negotiates content contracts with distributors for lump sums. The distributor then pays out one-time royalties from that lump sum.
- logfromblammo 9y agoMy guess is similar, except that the distributor never actually pays out royalties; instead using Hollywood-accounting to funnel the extra money away into the contract for some captive film-rights service company owned by contacts and cronies.