AppleTV+ Looking to Pay Actors Bonuses Based on How Many People Watch Their Movies and Shows
In a potential shake-up in the entertainment and streaming industry, Apple TV+ and other major streaming companies are exploring a new compensation model that could significantly alter how actors and production staff are paid.
According to a report by Bloomberg, the new system that’s being discussed would tie a portion of talent compensation to the performance of their work on the platform.
Under the new model, creators would receive bonuses based on how well their content performs, such as viewership numbers and audience engagement. If a film or show attracts a large audience, the creators could receive substantial bonuses. But, if the content does not perform well, the payment would be less impressive.
Bloomberg's report is based on an internal memo and discussions with industry insiders, revealing that Apple has been pitching this idea to talent representatives. The proposed system includes a "points system" for distributing bonuses, which would consider several factors:
The number of new subscribers who sign up for Apple TV+ specifically to watch the content.
The total viewing time spent by the audience on the content.
The production cost relative to the audience size.
For top-performing shows, creators could share up to $10.5 million per season in bonuses.
The aim of this model is to closely link compensation with content performance, which would incentivize higher-quality productions.
Currently, creators often receive substantial payments upfront, even before the production begins, which is a trend initiated by Netflix during the early days of streaming to attract big-name talent.
As streaming platforms now aim to reduce costs, this new model represents a shift towards a performance-based compensation structure.
Other streaming giants like Amazon and Netflix are also considering similar point systems. This indicates a broader industry movement towards performance-linked pay, driven by the need to optimize spending and enhance content quality.
The timing of this proposed model is significant, given the recent turmoil in the entertainment industry over compensation from streaming services.
Last year, the Hollywood writer's strike highlighted the dissatisfaction with existing payment structures, which many writers felt left them economically vulnerable. While the strike led to some renegotiations, challenges persist, and the lack of transparency from streaming services continues to be a concern.
The new proposed compensation model does raise questions about the reliability and fairness of streaming companies. These platforms are often criticized for how they operate and sudden content cancellations, leaving artists uncertain about their financial security.
As Apple TV+ and other streaming services move forward with these discussions, the industry will be watching and waiting to see if this new model can actually deliver a more equitable and sustainable environment for creators.