The financial relationship between filmmakers and Netflix is complex, differing significantly from traditional theatrical releases. Instead of box office revenue determining profit, a pre-negotiated licensing agreement governs payment. This agreement outlines the terms under which Netflix acquires the rights to stream a film for a specific period. A movie’s financial success on the platform is not directly tied to its viewership numbers in the same way it is in cinemas.
This model provides filmmakers with a guaranteed income stream upfront, mitigating the risk associated with box office performance. It also allows Netflix to bolster its content library, attracting and retaining subscribers. Historically, this arrangement has offered independent filmmakers a viable alternative to traditional distribution channels, providing wider accessibility for their work.
