Actors to be paid based on how well their films perform - Apple TV announce

Apple is considering a new compensation model for the entertainment industry that ties pay to performance, according to Bloomberg.

Under this new system, actors and filmmakers would receive tokens based on several factors such as the number of viewers, time spent watching, and the cost relative to audience size.

Apple has been meeting with talent representatives to discuss this suggested measure. 

This could have top shows earning up to $10.5 million in bonuses per season.

 This indicates a broader industry movement towards performance-linked pay, driven by the need to optimize spending and enhance content quality.

This proposal is set to propel better content and reduce upfront costs, as streaming platforms now aim to reduce costs. It represents a shift towards a performance-based compensation structure.

This incentive started with Netflix for its initial growth strategy. Amazon and Netflix are also exploring similar paths.

This proposed change comes up as there have been industry concerns over streaming compensation. 

Matter of fact, it was highlighted by last year’s Hollywood writers’ strike, in which many writers felt economically vulnerable.

While the strike led to some renegotiations, challenges persist, and the lack of transparency from streaming services continues to be a concern.

If compensation is based on rating then it didn’t 'perform' well. Also if the thresholds are achievable it could be lucrative, especially for films that overperform on streaming but wouldn’t necessarily do so theatrically.