4 ms·

Actually no. It’s a switch in the compensation model. Networks have traditionally paid producers using sizable backend deals. If the show does well they do well

Actually no. It’s a switch in the compensation model. Networks have traditionally paid producers using sizable backend deals. If the show does well they do well. Example: Larry David. Netflix in contrast never does backend deals that way. It’s all laid up front. It actually means that Netflix shoulders the risk upfront. So Networks are now simply switching to the upfront higher risk model where you eliminate backends and pay all upfront. You can’t say producers are “making more”, it’s just a different way to pay out. And again it’s a shift in risk management.

kevin_b_er 8y ago
We know that Hollywood cheats on the backend deals anyways in a philosophy known as "Hollywood accounting", so good on Netflix for offering straight deals not subject to the lying and cheating that Hollywood is known for via their accounting.
- gruez 8y ago
  >We know that Hollywood cheats on the backend deals anyways in a philosophy known as "Hollywood accounting" is this still a thing? if the studio is promising $50k + 5% of "profits", but you know that's going to be $0 because of hollywood accounting (which everyone does), why would you assign that "5% of profits" any value? as a rational actor, you would see the compensation as $50k, nothing more.
  - sethammons 8y ago
    Last popular one I recall was Lord of the Rings, but I admittedly do not follow this stuff even remotely. Just recall a post, prolly on here, about it.
    - xenadu02 8y ago
      Point on the net are points on nothing. Everyone has known this for 20 years now, so all points are on the gross. As a result, Hollywood has started manipulating the gross numbers to hide money. The Lord of the Rings lawsuit was over the right to audit the books to detect such fraud. No studio will ever actually let you look at the books. Period. If you sue they’ll drag it out then settle.
      - gamblor956 8y ago
        As a result, Hollywood has started manipulating the gross numbers to hide money. ...No studio will ever actually let you look at the books. Period. If you sue they’ll drag it out then settle. I used to have Hollywood studios as clients. This is blatantly false. Hollywood is built on two things: money and relationships. A studio that screws someone over is quickly out of business because no one will do business with them again. If you have sufficient clout, you get to see the books. If you invest sufficient money, you get to see the books. If you're anyone else, you're not in a position to care what's in the books since you get paid whether or not the films does well.
  - idontpost 8y ago
    > is this still a thing? Someone poor schmuck is always gonna be one of today's unlucky 10,000 who doesn't know he's getting screwed.

kevin_b_er 8y ago

We know that Hollywood cheats on the backend deals anyways in a philosophy known as "Hollywood accounting", so good on Netflix for offering straight deals not subject to the lying and cheating that Hollywood is known for via their accounting.

gruez 8y ago
>We know that Hollywood cheats on the backend deals anyways in a philosophy known as "Hollywood accounting" is this still a thing? if the studio is promising $50k + 5% of "profits", but you know that's going to be $0 because of hollywood accounting (which everyone does), why would you assign that "5% of profits" any value? as a rational actor, you would see the compensation as $50k, nothing more.
- sethammons 8y ago
  Last popular one I recall was Lord of the Rings, but I admittedly do not follow this stuff even remotely. Just recall a post, prolly on here, about it.
  - xenadu02 8y ago
    Point on the net are points on nothing. Everyone has known this for 20 years now, so all points are on the gross. As a result, Hollywood has started manipulating the gross numbers to hide money. The Lord of the Rings lawsuit was over the right to audit the books to detect such fraud. No studio will ever actually let you look at the books. Period. If you sue they’ll drag it out then settle.
    - gamblor956 8y ago
      As a result, Hollywood has started manipulating the gross numbers to hide money. ...No studio will ever actually let you look at the books. Period. If you sue they’ll drag it out then settle. I used to have Hollywood studios as clients. This is blatantly false. Hollywood is built on two things: money and relationships. A studio that screws someone over is quickly out of business because no one will do business with them again. If you have sufficient clout, you get to see the books. If you invest sufficient money, you get to see the books. If you're anyone else, you're not in a position to care what's in the books since you get paid whether or not the films does well.
- idontpost 8y ago
  > is this still a thing? Someone poor schmuck is always gonna be one of today's unlucky 10,000 who doesn't know he's getting screwed.