John Wells Says Industry “Will Have To Return To More Shared Rights Agreements” In Response To Jeff Sagansky’s Speech About Vanishing Backend – HRTS

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It became the speech heard around Hollywood — Jeff Sagansky’s blistering comments last week about the adverse impact the proliferation of the streaming-driven “cost plus” business model…

about the media investor and producer’s speech at a NATPE event, the discussion over the issue continues, with agencies and unions mulling ways to step in and help the creative talent they represent., a force within the WGA and former longtime president of the guild, offered his comments.

“I do believe the industry over time will have to return to more shared rights agreements,” he said. “Everything costs too much. It’s hard for companies to make money without enough revenue. Cost plus is complicated. They really remove the ability for a huge hit to generate profits for most creatives.

Employed by Netflix, Amazon, Disney and Warner Bros., the cost plus model makes for “brutally unfair” and “ridiculous” deals writers, directors, producers and actors “are being forced to sign,” Sagansky said in his speech.

 

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