Good for studios, right? Of course. But the unions realized that a long time ago and fought so that movies / shows also has back-end points that go into the union. I cannot overstate how critical this money is to their function.
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It goes right to health plans, protections, workman comp, general funds, and in short, it makes a film's success a success for everyone. But now here's where we get to the streaming of all of it.
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In streaming, there is no back-end. Netflix is not selling your show a hundred times over. It's not putting the movie in theaters. It doesn't have to do ANY of those things. It's producing a work they solely own and exhibit forever. A closed loop.
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Now, this is obviously a problem for hollywood's top talent, so what it means is that prospective back-end gets negotiated up front and put into their fee (hope you have a good agent!).
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But the real ones suffering are the unions and smaller artists, especially ones who make sudden runaway "millions of people watching" shows. Without any backend, they're not seeing any financial part of the success they created.
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Which brings us to the age old wisdom of "that's fine, you get to renegotiate your new higher salary next time when the contracts up!" Only the streamers, particularly netflix, aren't doing that.
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They're cancelling hit and even modest hit shows the second new contract negotiations come up. Some of this has to do with their creative philosophy (or the lack), but they're moving onto other cheaper artists / whatever fresh new thing.
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Replying to @FilmCritHULK
They know that they won’t get new subscribers (people watching it already have the service) for a third or fourth season of a good tv show so instead they cancel and make something new, wash rinse repeat
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Replying to @MetaReflexive
What kills me is this is also WRONG. They have never produced a show that got better as it went. Look at the ratings for shows like BREAKING BAD. The ratings went up and up and up with every season. Same for lots of HBO.
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Replying to @FilmCritHULK
I wasn’t aware of this, thank you for clarifying
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Netflix has so much data and they're always making the wrong conclusions. It's like the scene in the jerk where the gunman is shooting at him but hitting the cans and he's like "he hates these cans!"
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