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Yeah. Take the subscription revenue, divide it up by program based on watch count (or number of minutes viewed, or whatever). This gives you a rough approximat
by jsmith45 3y ago
Yeah. Take the subscription revenue, divide it up by program based on watch count (or number of minutes viewed, or whatever).
This gives you a rough approximation of revenue that can be attributed to each program. From this some proportion could sensible be allowed to the writers of the programming. This might be a percentage of the revenue after certain overheads have been first subtracted, or whatever. There are plenty of possible details to work out, but the basic concept seems sound.
Obviously this applies to subscription streaming without ads. Non-subscription streaming with ads seems perfectly amenable to traditional residuals, although if such ads pay less than TV ones (which i suspect is true), a smaller residual may make sense.
Subscription streaming with ads could sensibly be be either pure residual, of a hybrid of both approaches. The hybrid makes more sense for services that offer no ads if consumers pay more.