Jeff Sagansky, a media investor and producer and former top entertainment executive, is sounding the alarm on the adverse impact the now prevalent “cost plus” business model has had on …
, a media investor and producer and former top entertainment executive, is sounding the alarm on the adverse impact the now prevalent “cost plus” business model has had on profit participation. The setup, originally introduced by Netflix and subsequently adopted by most major streamers and TV studios, reverses a decades-long practice of above-the-line talent on hit series being handsomely rewarded with a cut of the profits that continues to generate income for decades after the show’s creation.
He later went further, stating that “We are in a golden age of content production and the dark age of creative profit sharing.” By 2010, successful series were making $1.5 million and more in profit per episode — and producers, writers, directors and actors were all participating in the fruits of their labor,” Sagansky said.
“These studios are part of big walled gardens where the main master they serve are their streaming arms,” Sagansky said. “And somehow they all have quickly adopted the Netflix production model which demands to own 100% of whatever is produced by Netflix Studios ‘buying out in perpetuity in most cases the producers’ backend up front’.”
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