After Netflix launched an ad-supported subscription service in November of last year, series creators are demanding more money from the streaming giant.
According to Jeremy Zimmer, president of the US’ United Talent Agency, this strategy “changes the game” in terms of how the streamer should compensate creative talent, according to the IANS.
“A successful show will attract more advertisers, resulting in increased revenue for Netflix. As a result, our clients who created that show should be compensated for the extra revenue,” Zimmer was reported to have said.
On November 3, 2022, Netflix launched the “Basic with Ads” plan for $6.99 per month, compared to $9.99 to $19.99 per month for an ad-free subscription.
According to reports, approximately 9 percent of Netflix subscribers in the United States have opted into the streaming service’s new “Basic with ads” streaming plan.
To compensate for slowing subscriber growth, Netflix launched its ad-supported service.
However, the company has long opposed profit-sharing agreements with creative agencies.
Previous rules, according to Zimmer, were tied to an ad-free platform.
“There’s a different revenue stream coming in that they said wouldn’t be there,” Zimmer explained.