>From what I can see, Zaslav should be directing his ire towards his own
executives who made the deals with Netflix if he's not happy with the
payment terms. It's not as though deficit financing is unusual in the TV
industry!

Under the old network model, a TV network would only pay a licencing fee
which represented a proportion of the overall cost of production. The
remainder of the cost would be made up by the producer selling those rights
globally and in separate windows to cable providers and streamers.

Because Netflix generally asks for exclusivity, they pay a premium over the
cost of production to the studio making the series. So a network like NBC
might only pay 50% of the production cost of an episode of Manifest,
Netflix is paying perhaps 125% of that cost. That removes a lot of the risk
to a studio like Warners who might ordinarily be left with a dud should the
network cancel the show after a few episodes (The downside of course is
that a show that's a massive hit has no real upside beyond that original
25% profit. BTW, I'm making up these percentages).

But this just feels like accounting.


Adam



On Sat, 10 Dec 2022, 13:21 'Bob Jersey' via TVorNotTV, <
[email protected]> wrote:

> Suddenly, sources tell Deadline, he's gotten his shorts in a bunch over
> the way the streamer pays, f'rinstance, WB Television for content... even
> delaying, they say, delivery of finished shows for weeks...
>
> https://deadline.com/2022/12/new-streaming-war-brewing-warner-bros-discovery-boss-david-zaslav-takes-aim-at-netflix-over-payment-terms-1235192453/
>  (link)
> B
>
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