Netflix co-CEO Ted Sarandos reiterated that the company is “not changing our compensation structure” on Thursday.
“We like our model, and talent likes our model,” the co-CEO added during the streamer’s quarterly earnings call.
“It’s so much more impactful for our business if we can make our films, our shows, just a little bit better, so much more impactful than making them a little bit cheaper,” Sarandos said. “Bela [Bajaria] said this very clearly a couple of weeks ago to the talent agencies, we’re not changing our compensation structure. Paying upfront, something that Netflix actually pioneered, benefits creators and it benefits Netflix.”
“So for creators, Netflix takes all the financial risks so that they can focus on making the best possible version of what they’re working on. And for Netflix, that model enables us to attract the best talent in the world,” he continued.
Sarandos also brought up bespoke deals and closed by saying, “Now, with all that said, we have been, and we continue to be, open to more bespoke deals where talent is interested. Now, they rarely happen, because typically the talent chooses the upfront model. So we think that where we are [is] the right model, and we are not looking to change it.”
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