Hollywood vs Netflix
Business Daily
BBC
4.4 • 816 Ratings
🗓️ 2 September 2019
⏱️ 18 minutes
🧾️ Download transcript
Summary
How are movie producers making money in the age of online streaming? In Hollywood, if you produce a hit show or blockbuster movie, a cut of the profits can lead to extraordinary wealth. That could mean producers lowering their salaries to get a percentage of the box office. But Netflix and other streaming services don’t play by old Hollywood’s rules.
The BBC’s Regan Morris speaks to executives and producers about how Hollywood’s business model is changing as a content arms race from the streaming services transforms the film industry. She speaks to YouTuber Lizzy Sharer; Producers Guild of America co-presidents Gail Berman and Lucy Fisher; producer Rob Henry; and Disney executive Kevin Mayer.
(Picture: 35mm film reel and movie clapper on wooden background; Credit: fergregory/Getty Images)
Transcript
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| 0:00.0 | Hello and welcome to Business Daily. I'm Reagan Morris. |
| 0:04.3 | $2 billion worldwide. In Hollywood, a movie can make a billion dollars at the box office, |
| 0:10.9 | and yet on paper, it can show no profits. That's known as Hollywood accounting, |
| 0:16.9 | but producers with clout know how to get their profits on the back end. |
| 0:20.4 | Hollywood accounting has been very, very good to me, I have to say. |
| 0:24.1 | So I'm going to say that there are advantages to a back-end model. |
| 0:29.3 | And then there are many people who have said, hey, look, Hollywood fancy accounting. |
| 0:33.3 | I never got any back-end anyway. |
| 0:35.6 | The back-end deal has been the ticket to vast wealth in Hollywood for many a producer. |
| 0:41.7 | But streaming services are changing that. |
| 0:44.2 | Most of them pay up front for content, and then the deal is done. |
| 0:48.9 | You don't even know how well your content is doing. |
| 0:52.1 | If you have a successful show, you don't know how successful it is. |
| 0:57.0 | If you have an unsuccessful show, you don't really know how unsuccessful it is. |
| 1:03.0 | Today we're talking with producers and executives about how the new Hollywood is changing the way old Hollywood does business. |
| 1:10.0 | What is up, guys? Welcome back to the Funnish Channel on YouTube. |
| 1:13.3 | But first, let's talk with YouTuber Lizzie Scherer, who's running her own business. |
| 1:19.1 | Because Hollywood is desperately, they're moving into streaming and they're desperately trying to attract young people. |
| 1:26.0 | You've been out of the year. You're 25 years old |
| 1:28.8 | and you've created a channel with 4 million subscribers. I mean, that's fairly impressive. |
| 1:36.7 | Is the career track for you? Are you trying to break into Hollywood or is Hollywood trying to |
| 1:42.3 | break into what you do? I personally am not trying to break into Hollywood or is Hollywood trying to break into what you do? I'm personally, am not trying to break into Hollywood. |
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