Series creators on Netflix are demanding more money from the streaming giant after it launched an ad-supported subscription service in November last year.
According to Jeremy Zimmer, head of the United Talent Agency, this strategy "changes the game" in terms of how the streamer should compensate creative talent, reports Financial Times.
"A show that does really well will get more advertisers and more revenue will flow to Netflix. Therefore, our clients who created that show should be compensated for that additional revenue," Zimmer was quoted as saying.
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Netflix launched the "Basic with Ads" plan on November 3, 2022, at $6.99 per month, compared to between $9.99 and $19.99 per month for an ad-free subscription.
About 9 per cent of Netflix subscribers in the US have opted into the streaming service's new "Basic with ads" streaming plan, according to reports.
Netflix launched its ad-supported service to offset slowing subscriber growth.
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The company, however, has long resisted profit-sharing arrangements with creative agencies.
However, according to Zimmer, previous rules were tied to an ad-free platform.
"There's a different revenue stream coming in that they had said wasn't going to be there," said Zimmer.
According to analytics firm Antenna, in addition to the "Basic with Ads" subscribers who signed up for Netflix, the firm observed only 0.1 per cent of Netflix's existing US subscribers switching to the "Basic with Ads" plan in November.
