Netflix Stands Firm on Cost-Plus Compensation Model

Ted Sarandos confirms Netflix's commitment to upfront payments, dismissing speculations of a shift in talent compensation strategy.

Netflix co-CEO Ted Sarandos reaffirmed the company's adherence to its cost-plus licensing model, which involves covering production costs and providing a profit margin to creators.
Sarandos addressed recent industry rumors about potential changes to Netflix's financial terms, asserting that the company is not planning to alter its compensation structure.
The cost-plus model, pioneered by Netflix, is favored by talent for its upfront payments, allowing creators to focus on their projects without financial risk.
While Netflix is open to bespoke deals, Sarandos noted that most creators prefer the existing upfront payment model, which has been beneficial for both parties.
Despite limited theatrical releases, Netflix aims to enhance subscriber engagement by streaming popular films directly, contributing to its strong Q3 results and subscriber growth.