AppleTV+ tries to pay actors bonuses based on how many people watch their movies and shows

In a potential shift in the entertainment and streaming industry, Apple TV+ and other major streaming companies are exploring a new compensation model that could significantly alter how actors and production staff are paid.

According to a Bloomberg report, the new system under discussion would tie a portion of talent’s compensation to the performance of their work on the platform.

Under the new model, creators would receive bonuses based on the performance of their content, such as number of viewers and audience engagement. If a film or show attracts a large audience, the creators may receive substantial bonuses. But if the content didn’t perform well, the payout would be less impressive.

Bloomberg’s report is based on an internal memo and discussions with industry insiders, revealing that Apple pitched this idea to talent representatives. The proposed system involves a “point system” for the distribution of bonuses, which would take into account several factors:

• The number of new subscribers who sign up for Apple TV+ specifically to watch content.

• The total viewing time the audience spent on the content.

• The cost of production relative to the size of the audience.

For top-performing shows, creators could share up to $10.5 million per season in bonuses.

The aim of this model is to closely link compensation with content performance, which would incentivize higher quality productions.

Currently, creators often receive substantial payments upfront, even before production begins, a trend started by Netflix during the early days of streaming to attract big-name talent.

As streaming platforms now aim to reduce costs, this new model represents a shift towards a performance-based compensation structure.

Other streaming giants like Amazon and Netflix are also considering similar points systems. This points to a broader industry movement towards performance-related pay, driven by the need to optimize spend and improve the quality of content.

The timing of this proposed model is significant, given the recent turmoil in the entertainment industry regarding compensation from streaming services.

Last year, the Hollywood writers’ strike highlighted dissatisfaction with existing payment structures, which many writers said made them economically vulnerable. While the strike has led to some renegotiations, challenges persist and the lack of transparency from streaming services continues to be a concern.

The proposed new compensation model raises questions about the reliability and fairness of streaming companies. These platforms are often criticized for the way they work and for sudden content deletions, leaving artists uncertain of their financial security.

As Apple TV+ and other streaming services advance these discussions, the industry will watch and wait to see whether this new model can actually deliver a more equitable and sustainable environment for creators.