Apple TV+ will explore a new payment model that rewards actors based on the success of their producers.
In a move that could revolutionize the entertainment and streaming industry, Apple TV+ is considering a new compensation model that could dramatically change the way actors and production teams are paid.
A new paradigm in compensation
According to a Bloomberg report, Apple TV+ and other streaming giants are discussing a system where a certain amount of per-capability fees are tied to the performance of their content on the platform. This model proposes that creators receive bonuses based on the performance of their work, such as viewership numbers and audience engagement. Simply put, if a movie or series attracts a large audience, the creators can get huge bonuses. On the other hand, if the content is not well received, the payment will be less impressive.
The Bloomberg report, in an internal memo and discussions with industry insiders, indicates that Apple is promoting this idea among talent agents. The proposed system includes a “point system” to distribute bonuses, taking into account several factors.
The number of new subscribers who sign up for Apple TV+ specifically to watch content. Total viewing time viewers spent on the content. The price of the product in terms of the number of viewers.
Important change context
For top-performing shows, creators can share bonuses of up to $10.5 million per season. This model seeks to closely link compensation to content performance, thereby encouraging higher quality products.
Today, creators are paid huge upfront fees even before they start production, a trend that was started by Netflix in the early days of streaming to attract big-name talent. However, as streaming platforms look to cut costs, this new model represents a shift to a performance-based compensation structure.
Other streaming services like Amazon and Netflix are also considering similar point systems. This reflects a broader movement towards performance-related payments in the industry, driven by the need to optimize costs and improve content quality.
The impact of the writers’ strike
The idea comes at a critical time, given the recent uproar in the entertainment industry over compensation for streaming services. Last year’s strike by Hollywood writers highlighted their dissatisfaction with existing pay structures, which left many writers feeling financially vulnerable. While the strike has led to some renegotiations, challenges remain and the lack of transparency from distribution services is a concern.
This proposed new compensation model raises questions about the reliability and fairness of streaming companies. These platforms have been criticized for their way of working and sudden deletion of content, leaving artists unsure of their financial stability.
The future of audience-based bonuses
As Apple TV+ and other streaming services move forward with these discussions, it remains to be seen and waited to see if this new model can truly provide a more equitable and sustainable environment for creators. This change not only encourages high-quality products, but also provides greater financial security for talent by tying their compensation directly to the success of their work.
Ultimately, this move could usher in a new era in the entertainment industry, where quality and audience engagement are the primary drivers of compensation. What remains to be seen is whether Apple TV+ and its competitors can implement this system fairly and transparently, thus addressing current criticisms of the payment system in the streaming world.