
Part of the speculation around Netflix’s proposed payment plan for talent would involve asking them to reduce their upfront cost by 20% to 30%, for starters.
Now, the catch (or the upside) is that that number would effectively double if the show turned into a major hit for the streamer. The parameters of the latter aren’t, for right now, clearly defined (publicly at least), but it sounds like Netflix would pay talent significantly more than before on shows that became tentpole productions for the streamer.
And they would potentially be able to cut bait quicker on shows that didn’t work with less of a sunk cost associated with the series.