Should Netflix share some of the advertising revenue with the creators of the TV series?
The request: “The directors and creators of the most successful Netflix content receive a cut of advertisers’ money” (a bit like YouTube).
Since November last year, Netflix has a new low-cost subscription supported by commercial breaks. It’s called Netflix Base with advertising and is also available in Italy, where it costs €5.49 a month.
Meanwhile, some major creative agencies in Hollywood have begun demanding that even the most successful directors and writers of Netflix content receive a cut of advertisers’ money (much like they do on YouTube or Twitch).
What is Netflix Basic with Ads?
Netflix launched it in an attempt to curb the hemorrhaging of subscribers and try to reach new audiences. The hope is that the attractive price could convince a large number of users to trust the platform again.
However, Netflix Base with advertising imposes some important limitations: for example, the streaming resolution stops at 720p and not all movies and TV series are included in the catalog (some third-party products will arrive later). Perhaps also for this reason, according to the first reports by the American media it seems that the subscription is not going very well, to the point that some advertisers have already decided to reduce investments for 2023, while others still may even be entitled to a refund partial of the sums already invested. Netflix debunked these rumors, accusing the media outlets that reported them of sharing inaccurate information.
Should Netflix split advertising revenue with series creators?
The fact is that the introduction of advertising has brought a new form of monetization for Netflix. Moreover, it would be a particularly meritocratic source of income, since it is precisely the contents most watched by users that would allow advertising to be shown to a greater number of viewers.
For this reason, the first pressures are already arising to try to convince Netflix to share part of the advertising revenues with the directors, authors and protagonists of the most successful content in the catalogue. The thesis is simple: « Have I created a successful TV series that is helping you achieve the goals promised to advertisers? Well, then I’m entitled to a piece of the pie .’
For example, Jeremy Zimmer, N.1 of the United Talent Agency:
A TV series that gets strong numbers will attract more advertisers, increasing Netflix’s revenue. As a result, we believe our customers who created those hit shows should be compensated for the benefits they bring to Netflix.
Netflix – insists Zimmer – would have changed the rules of the game. The platform is no longer an ad-free environment. “There is a new source of income that until a few years ago they had guaranteed that there would never be”.
“ Talent will want the opportunity to receive compensation every time their series is deemed successful by advertisers and audiences,” concludes Zimmer.