LOS ANGELES (WP) – Netflix aims to pay directors, actors and producers a bonus if their films are successful, a new incentive aimed at winning projects that might otherwise go to rival studios, according to people familiar with the matter.
A prestigious film might have its incentive pegged to how many awards it wins.
Bonuses for other movies could be based on viewership.
The approach would be a departure for Netflix, which has typically rewarded talent with upfront deals.
But the bonuses are different than Hollywood's traditional "back-end" arrangements, where film-makers get a percentage of box-office money.
Since Netflix's films do not get released widely in theatres – if they hit the big screen at all – there is no hope for a big payoff there.
Mr Scott Stuber, head of Netflix's film unit, has discussed possibilities with producers, people familiar with the conversations said.
Netflix has built up its movie studio from scratch in just a few years, forcing it to make up the rules as it goes along. It is also facing greater competition for projects than ever before, making it harder to lure talent and stay ahead of rivals.
It does not offer the kind of deals that major studios like Disney provide.
Robert Downey Jr, for instance, has made millions for his role in Iron Man and subsequent Marvel movies – making him one of a handful of stars who earn more in profit than salary.
Netflix has never offered back-end deals. It covers the full
