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Apple seeks to change pay structure for TV, film talent

The tech giant wants to shift to a performance-based fee structure.

The tech giant wants to shift to a performance-based fee structure.

An Apple iPhone 13 Mini is pictured. (Photo by H.S. You via Flickr)
An Apple iPhone 13 Mini is pictured. (Photo by H.S. You via Flickr)

Apple is working with Hollywood studios on a new pay and performance structure for its film and television talent, according to a report.

Bloomberg says Apple has compensated “people as though all their projects were successful” for years, but now wants to “begin basing pay on how a series or movie performs.”

Under a new system being proposed by Apple, talent would be paid out bonuses based on a points system, with the size of the bonuses based on the number of people who sign up for Apple’s streaming service Apple TV Plus to watch their show, how much time those customers spent viewing their series and the cost of the program relative to the size of its audience, Bloomberg said.

Those involved in some of Apple’s top content could share up to $10.5 million per season of a television series, the report claimed.

The structure is more of a framework and isn’t finalized, Bloomberg said. Instead, Apple is seeking feedback on the proposal and has reached out to top Hollywood studios and other key stakeholders for guidance on how it should proceed.

That said, Apple appears committed to changing the way it funds television series for its fledging streaming service, which costs $10 per month or $100 per year.

Apple is the latest to suggest changes to the conventional way that distributors like streaming services pay for the production and licensing of content.

Netflix and Amazon have each spent a significant amount of time, energy and money weighing different approaches for performance-based compensation, with both companies working through the complexities of relevant data points and responses.

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About the Author:

Matthew Keys

Matthew Keys is a nationally-recognized, award-winning journalist who has covered the business of media, technology, radio and television for more than 10 years. He is the publisher of The Desk and contributes to Know Techie, Digital Content Next and StreamTV Insider. He previously worked for Thomson Reuters, the Walt Disney Company, McNaughton Newspapers and Tribune Broadcasting.
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