Walt Disney Co., which became a dominant player in television production with its acquisition of Fox assets earlier this year, is pushing to transform how TV show creators are compensated for their work.Shows reaching that milestone — usually achieved at some point in the not easily attained fifth season of a network run — became ripe for syndication, and the rich financial rewards that came with it.
Although Netflix and Amazon have been making such deals for the last few years, Disney would be the first legacy media company to require them for all new TV shows — whether on cable, broadcast or streaming. The change could make it easier for other studios to follow suit, given Disney’s dominant role in the TV production business as the owner of 21st Century Fox TV, ABC Studios and Fox 21.While some have signed these deals, others have balked, sources said.
Leigh Brecheen, a partner at the entertainment law firm of Goodman, Schenkman and Brecheen, said she has clients who have not signed onto the deals with the Disney-owned entities due to objections to the new plan. She said the choice is the client’s, but she is reluctant to close deals based on how the series bonuses are currently structured.
Disney declined to make an executive available to discuss the plan. But the rationale it has presented to agents, according to people familiar with the talks, is that a change to the long-running system is necessary because traditional syndication and foreign markets are deteriorating.
Compensation for revenue generated through music publishing, merchandising, DVD and video downloads would also be paid from a bonus pool. A program’s popularity on Disney + and Hulu would be rewarded as well.A major benefit for Disney, according to agents who have studied the deal, is that the company would no longer have to determine fair market value before putting one of the broadcast or cable series it owns on Disney +.
Hey I know how to save your profits and lower cost. Quit catering to celebrities. There’s a million other people out there that would do it for free just to say they did. Damn. Wake up.
Always screw the creators.
Calling them 'Showrunners' is degrading- There on the level of the great Movie Makers- a hit here and there-
Let us take a page from commercials and content? 2017?
Disney will save a lot of money on accounting costs. Less money spent on postage to mail out residual checks. It’s a win-win situation.
All for me, nobody else............ King for Crookedness👑
Big Mouse wants to maximize it's profits?
Good!
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Source: CNBC - 🏆 12. / 72 Read more »