For the next Netflix film by Ben Affleck and Matt Damon The tear, the filmmakers pushed the streamer to strike a deal that would reward their team with bonuses if the film performed well.
The deal was made through Affleck and Damon’s production company, Artists Equity, and is a departure from the way Netflix structures compensation. Unlike traditional studios, which often combine upfront salaries with a final stake for certain actors if a film or series is successful, Netflix typically pays cast and crew an upfront fee determined in advance.
“We wanted to bring equity and address some of the real issues that are present and pressing for our business,” Affleck said. The New York Times. “This agreement is fundamental, philosophically, to the ideas we had in creating this company.”
As part of the agreement for The tear — a film that follows two Miami cops who find hidden money — the 1,200 people involved in the nearly $100 million production will be eligible for a one-time bonus if the film meets performance expectations. The film will be evaluated during its first 90 days on Netflix and measured against other titles on the platform, with the idea that there is potential for additional payout to the team, according to The New York Times.
“Everyone who is in this movie, from top to bottom, or who worked on the team, will receive bonuses based on the parameters that we have already set and that they have shared with us,” Affleck said, although he did not specify what those parameters were.
Affleck and Damon launched Artists Equity in late 2022, with the company sharing profits with everyone who works on their films.
On The tearAffleck thanked Netflix co-CEO Ted Sarandos for supporting Artists Equity’s approach. “I think he’s clearly someone who cares about this business, who wants it to work, who is doing very well and who understands the value of filmmakers and performers and artists,” he said.
An interesting note of the deal is the financial backing behind Artists Equity. The company is funded by Gerry Cardinale and his partners RedBird Capital, who have committed more than $100 million to the production project.
But Cardinale and RedBird are also locked in a fierce battle with Netflix for another prize: Warner Bros. Discovery.
Netflix has signed a deal to acquire Warner Bros. for 82.7 billion dollars, with the ambition of bringing the legendary studio into its fold. But the deal with Netflix came after WBD rejected David Ellison’s Paramount, which had been pursuing a merger since late summer.
RedBird is a strategic investor and partner of Paramount and Ellison. A number of RedBird’s operating executives joined Paramount after Ellison’s deal closed to help run the company, including President Jeff Shell. Cardinale also serves on the board of directors of Paramount.
Of course, any business relationship must be managed independently, so the uphill battle for WBD and the more partner-focused deals for Artists Equity are not necessarily at odds when it comes to RedBird’s business approach.
