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Re:Netflix Is Now Available Around the World by munificent on Wednesday January 06, 2016 @03:57PM (#10853702)
> Flipping the question a little bit, how do you justify paying actors 40 million for a movie if they're being streamed online for $5 a pop?

This is basic supply and demand. Harrison Ford has a monopoly on Harrison Ford, so if you want Harrison Ford, you have to pay what Harrison Ford wants for it.

Re:Netflix Is Now Available Around the World by losteric on Wednesday January 06, 2016 @04:49PM (#10854077)
Maybe this will give all the not-Harrison Fords a better chance. A lot of the A list is about hiring tried and true great actors... but you can get 80% of Harrison Ford for much less than 80% of his current asking price.

Much like making music, filming technology is already commoditized at the entry level... it's distribution costs that remain high (hard to reach a large audience without massive ad $$, known actors, and an established publisher). Netflix would seriously disrupt that, boosting "indie" film making in the same way that Spotify / youtube / myspace / etc seriously boosted non-mainstream music. We still have A-list musicians but the long tail is seeing far more success than before.

Re:Netflix Is Now Available Around the World by frandroid on Wednesday January 06, 2016 @05:09PM (#10854219)
Netflix has paid Kevin Spacey his price, anyway, so the point is kind of moot.
Re:Netflix Is Now Available Around the World by petra on Wednesday January 06, 2016 @08:45PM (#10855393)
>> filming technology is already commoditized at the entry level

But Indie music is better in the personal preference category and usually no worse in production values. And on the other hand what we see in regular tv: we see increasing abundance of content , and most people flocking more and more to the highly rated content which usually has high production values and often some measure of high brand.

That's probably because they don't want to risk an hour of their time. On the other hand , listening to a new song ? who cares if it's bad - it's only a minute to switch to something else , and it's a social custom too.

Re:Netflix Is Now Available Around the World by jsmeaton on Wednesday January 06, 2016 @04:12PM (#10853811)
Exactly, supply and demand. He demanded what the studio could afford to pay. If the movie is no longer generating so much revenue (because streaming) then actors will no longer be able to (successfully) demand 8 figure payments.

I think some of the low to medium budget movies will make the transition to simultaneous streaming releases where it may be easier to recoup money early on. This may or may not force a similar thing to happen with big budget films, but too many lifestyles would be affected for this to happen in any short to medium term.

Re:Netflix Is Now Available Around the World by stcredzero on Wednesday January 06, 2016 @05:03PM (#10854169)
If the movie is no longer generating so much revenue (because streaming) then actors will no longer be able to (successfully) demand 8 figure payments.

Pretty much what happened to authors of novels.

Re:Netflix Is Now Available Around the World by zanny on Wednesday January 06, 2016 @05:22PM (#10854308)
Were publishing companies hiring authors for millions of dollars?

I know authors usually use publishers for review / editing / publication, but I'm not aware of a time where the relationship was not "publisher gets X% cut of revenue". When was it "author gets X million dollars"?

The same applies to music. Pretty much every creative industry outside film is paying the performers or creators a percentage of sales. Its just harder for that to scale to endeavors that take thousands of people like modern blockbusters.

Re:Netflix Is Now Available Around the World by corin_ on Wednesday January 06, 2016 @07:05PM (#10854952)
> The same applies to music. Pretty much every creative industry outside film is paying the performers or creators a percentage of sales. Its just harder for that to scale to endeavors that take thousands of people like modern blockbusters.

For performers, actors in plays, members of an orchestra, backup dancers behind a pop star... most are getting paid per performance or per period of time, not royalties. Royalties are more common for people who can take a majority responsibility for the end product, e.g. a solo artist or an author.

Re:Netflix Is Now Available Around the World by lmm on Wednesday January 06, 2016 @06:00PM (#10854597)
Publishing customers were at least sometimes paying million-dollar advances (which I appreciate isn't quite the same thing).
Re:Netflix Is Now Available Around the World by cthalupa on Wednesday January 06, 2016 @06:21PM (#10854715)
Lump sum payments are not at all uncommon when it comes to ghostwriting.

(Royalties aren't rare either, but a lump sum agreement isn't eyebrow raising in the least)

Re:Netflix Is Now Available Around the World by cm2187 on Thursday January 07, 2016 @04:06AM (#10856872)
I am not sure why you are presenting reducing actors revenues as a desirable goal. Movie studios can afford to spend that much because there is enough demand for movies of that budget. What's wrong with that?
Re:Netflix Is Now Available Around the World by jmathai on Wednesday January 06, 2016 @04:05PM (#10853760)
There are 2 sides to the transaction and it comes down to margins. If the margins don't exist to pay Harrison Ford $40M then either he takes less $ or another actor is found.
Re:Netflix Is Now Available Around the World by kbutler on Wednesday January 06, 2016 @08:59PM (#10855470)
>Or the movie doesn't happen and we will see movies of lower quality because of that in coming years?

Hard to imagine how that would be possible...

Re:Netflix Is Now Available Around the World by ponyous on Wednesday January 06, 2016 @05:57PM (#10854568)
Or the movie doesn't happen and we will see movies of lower quality because of that in coming years?
Re:Netflix Is Now Available Around the World by qbrass on Wednesday January 06, 2016 @07:22PM (#10855037)
The original Star Wars did okay using no-name actors instead of paying Harrison Ford $10 million just to show up.
Re:Netflix Is Now Available Around the World by cageface on Wednesday January 06, 2016 @08:20PM (#10855296)
But they paid Alec Guinness very handsomely for his role.
Re:Netflix Is Now Available Around the World by davidgay on Wednesday January 06, 2016 @09:27PM (#10855560)
Though it did do ok paying Harrison Ford to (not just) show up.
Re:Netflix Is Now Available Around the World by corin_ on Wednesday January 06, 2016 @07:08PM (#10854969)
If the industry shifts to paying its top stars smaller but still large sums of money then maybe Harrison Ford won't accept that, but the best actors in the next generation who weren't used to getting paid todays rates will.
Re:Netflix Is Now Available Around the World by marcosdumay on Wednesday January 06, 2016 @08:07PM (#10855227)
Well, I wouldn't jump so fast to the conclusion that those movies would be of lower quality.
Re:Netflix Is Now Available Around the World by knicholes on Wednesday January 06, 2016 @06:26PM (#10854748)
We end up with YouTube?
Re:Netflix Is Now Available Around the World by ipsin on Wednesday January 06, 2016 @10:09PM (#10855716)
What you're saying is true, but it's also interesting to me that studios could potentially get by with less.

Young Harrison Ford in the late 1970s might have been willing to trade away the use of his likeness in future Star Wars films for a relatively small consideration.

In the future, if a studio can find a relatively unknown actor who wants the work, it's possible they could do with a digitally-produced likeness, in case the original actor doesn't want the job. (Sort of an augmented version of the SNL contract)

Re:Netflix Is Now Available Around the World by appleflaxen on Thursday January 07, 2016 @05:48AM (#10857204)
SNL?
Re:Netflix Is Now Available Around the World by throwaway049 on Thursday January 07, 2016 @07:40AM (#10857569)
A long term 'gold handcuffs' deal for new performers http://observer.com/1999/08/snl-s-killer-contract/