As audience preferences shift to streaming services, Netflix, the header, is being challenged by its natural competitors, cable and broadcast TV, and now by other streaming services. As Amazon Prime and Disney Plus gear up as head on challengers, Netflix is making moves to adjust.
According to a Bloomberg report, Netflix is considering paying a premium to filmmakers whose films either perform well on their streaming platform or receive prestigious awards. According to Bloomberg, the bonus idea is still being discussed internally, but it could be a costly change to Netflix’s strategy. The company has traditionally borne production costs and has also paid fixed premiums to filmmakers and producers.
‘Content is king’ is a cliché that came to prominence in the last decade. The streaming age has only intensified its truth, but with one change – the folks that create content are the real kings. Netflix exploded when it expanded beyond being merely a distribution platform, when it became the producer of its own high quality content. Amazon has quickly become a challenger by creating award winning content. Add in HBO, and there is more work for creators in today’s entertainment business than ever before. The competition for the best writers, directors, actors and production talent is fierce. As an article in The Verge has said, the battle for Netflix is “To stay competitive and win favor with on-the-fence directors and producers.” If that takes paying bonuses for the right storytellers, so be it.