Agreed, though I don’t think Zas is really pissed over standard accounting.
His whole deal is letting everyone know there is a new sheriff in town, who
will be doings things differently going forward.

Even if this current tantrum changes nothing in current arrangements, he
wants peers, subordinates and contractors to know that he will have a ready
supply of the good, dirty stuff that millions of eyeballs get addicted to,
and those who want those eyeballs are going to have to pay more, and more
upfront, than they used to.

On Sat, 10 Dec 2022 at 9:33 AM Adam Bowie <[email protected]> wrote:

> 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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