Netflix cuts compensation for comedy specials as it cuts costs, shifts burden: report – Seeking Alpha
Netflix (NASDAQ:NFLX) is changing up the compensation for comedy specials on its streaming platform, moving to a licensing model as it seeks to cut costs and put more of the onus on the comedians themselves, according to The Wall Street Journal.
The news outlet, citing people familiar with the matter, noted that the move would give comedians more control over the work. In some cases, Netflix (NFLX) is offering a two-year licensing deal worth roughly $200,000 for some comedians, instead of a previous situation where it paid as much as $1M in one lump-sum payment.
Under the new deal, comedians would pay for the production of the shows upfront. But after the agreement ends, the comedians regain full control of the show and it can be used for promotion of future work, the news outlet explained.
A Netflix spokesman told The Journal that the new licensing method is “an additional, alternative pathway for comedians (at every point in their career) to work with Netflix, in response to the current market.”
Netflix (NFLX) shares fell 2% in premarket trading on Friday.
Previously, Netflix (NFLX) said it would spend roughly $17B in content spending for 2022 and has said it would keep spending on content in that range over the coming years, The Journal added.
Earlier this week, Oppenheimer upgraded Netflix (NFLX), noting the eventual launch of an advertising-supported tier should boost subscriber growth and raise its average revenue per user.