Friedberg explains Netflix now pays independent directors production cost plus 10%, unlike previous TV economics.
“If you're on Netflix today, and we're gonna talk with Neil and Ari about this later today, you can if you're an independent director, you go to Netflix, they're like, Okay, we'll pay for your production cost plus 10%. And it's like quite different than what it used to be.”
Friedberg contrasts old TV economics where hit shows made hundreds of millions with Netflix's cost-plus-10% cap.
“Like you could make hundreds of millions of dollars if it worked out and it became a massive show, but you're basically capped at Netflix.”