The production company then makes money through licensing deals, syndication and other opportunities, especially if the show is a big hit.
Plus, because Netflix does not have to worry about upsetting advertisers, the streaming giant can give show creators more freedom to create the show they want.Ĭompare that to a traditional television licensing deal, where the network airing the first run of the show pays a fee of only 60 to 70 percent of the show's production cost, according to one executive who negotiates TV deals. These contracts break the model on how shows are typically licensed, and offer way more money up front than networks usually pay to have these shows on their channels. These moves, which come during contract talks with production companies, make it very hard for TV networks to compete, according to several people who have worked with Netflix on such deals. The high-flying company is frequently offering to pay for a television show's production costs and throw in an additional fee on top to own original series, a different strategy than traditional TV networks have employed in the past. Netflix NFLX, not surprisingly, is trying something very different to secure new TV shows. Still, many people are lured by Netflix because the company has treated its producers well and lets them make the show they want without interference. However the production company retains the majority of the rights, giving them the opportunity to make money in the future if the show is a hit.
Paid programming tv pilot license#
This is different from how networks typically license shows, which often only covers 60 to 70 percent of production. Netflix buys shows at a rate of the cost of production plus about 30 percent of production costs, but it retains most of its future licensing rights.
0 kommentar(er)
