What does the Netflix-Warner deal mean for talent?

"Last week, Netflix announced it was buying Warner Bros. in a massive $82.7 billion deal. The streaming giant's acquisition will set Netflix, which already leads the streaming wars, even further apart from competitors, as it will also add HBO, a Warner subsidiary. But while the deal will further cement Netflix's domination, questions are swirling around how it will impact viewers, as well as the talent platforms rely on."

"Streaming platforms have recently undergone consolidation, creating three mega-platforms. According to a Forbes survey, Netflix is the most popular streaming service in America with 55% of Americans saying they use it, followed by Amazon Prime (51%), and Disney+ (49%). And, for talent, like actors and writers, the further consolidation of streaming platforms may escalate financial worries that have already been growing for some in the entertainment industry."

"In recent years, a number of actors have openly raised concerns about fair pay, as streaming platforms began to change the game. While traditional broadcast series pay residuals for each re-airing, as a percentage of the actor's salary, later agreements changed the way actors earned residuals entirely. The new formula was based around a predetermined licensing fee, rather than the number of re-runs. Netflix, which seemed to favor paying actors more upfront while rather than residuals may have been particularly guilty of underpaying talent."

Netflix announced a $82.7 billion acquisition of Warner Bros., adding HBO and widening its lead in streaming. Streaming consolidation has produced three mega-platforms, with a Forbes survey showing 55% of Americans use Netflix, 51% Amazon Prime, and 49% Disney+. Consolidation raises concerns for viewers and intensifies financial pressures on talent. Residuals shifted from per-reairing percentages to predetermined licensing fees, reducing long-term payouts. Netflix favored higher upfront pay versus residuals, prompting complaints of underpayment. Actors reported low paychecks, maintaining day jobs, and incurring production expenses, a grievance that gained momentum during the 2023 writers' strike.

Read at Fast Company