You must be aware that Netflix has already introduced a more affordable ad-supported plan in many countries. Basic with Ads includes 4 minutes of Ad on every one hour of streaming a video. Although only 9% of people use it and only 0.1% of people downgraded to use this plan, it is still a blessing in disguise for creators.
Netflix has always ignored the demand of paying showrunners more if their show did well on the platform. They usually ignore it by saying that Netflix doesn’t offer any ads so there is no chance of paying more if a show reaps more views.
But now, things have changed. Netflix comfortably throws ads and it indicates something. Ads directly mean more money. Needless to say, those shows which are getting streamed more will be getting more ads and thus more views.
Naturally, any show that performs well will give away more money.
“A show that does really well will get more advertisers and more revenue will flow to Netflix. Therefore, our clients who created that show should be compensated for that additional revenue,” said Jeremy Zimmer who is the CEO of United Talent Agency.
He went on saying, “There’s a different revenue stream coming in that they had said wasn’t going to be there”.
So now Netflix has a clear demand from showrunners, “if our shows perform well, pay us more.”