2 ms·
Your own citations demonstrate that Netflix does not pay residuals on an ongoing sales or viewership basis, but rather all at once up-front... "Netflix employs
by gamblor956 4y ago
Your own citations demonstrate that Netflix does not pay residuals on an ongoing sales or viewership basis, but rather all at once up-front...
"Netflix employs a cost-plus model, which means that it pays a show’s entire production costs, plus a 30% premium. Netflix shows are expensive because the company holds onto them. There's no money to be made in syndication, so it needs to make creators feel enticed to sell their ideas to them."
Bonuses and pay bumps are not residuals. For successful shows, those happen entirely separately from residuals.
In the case of Bird Box, Netflix was deemed to have not paid enough upfront. It did not owe residuals on an ongoing basis. (Note that Netflix does all of its licensing deals at the beginning, it doesn't continue to shop them later. This is in sharp contrast to...every other film library, which continuously shops its IP out to other organizations as the point of having a film library is the long-tail licensing income.) Licensing residuals are not relevant to a discussion on syndication residuals.