Shonda Rhimes, other creators unhappy with Netflix’s new mid-video ads

Shonda Rhimes attends the 2018 Vanity Fair Oscar Party on March 4, 2018 in Beverly Hills, CA.

Presley Ann Patrick McMullan | Photo gallery

Shonda Rhimes, the powerhouse behind “Bridgerton” and “Inventing Anna,” was among the showrunners, producers and writers who expressed excitement. NetflixThe decision to include video ads is central to their content, according to those who are familiar with this matter.

Rhimes and Intrepid Pictures’ Trevor Macy and Mike Flanagan are among a group of actors who have told Netflix executives they believe the ads have ruined their stories, said the people, who asked not to be named. Named because discussions are private. Netflix has told producers it won’t share advertising revenue with them, the people said.

Netflix isn’t the first streamer to have an ad-supported platform. But he used his acceptance of the goods as a commodity to help the countries with the goods. Rhimes signed a multiyear deal with Netflix in 2021 to produce content exclusively for the streaming service. When it entered into the agreement, Netflix had a firm policy not to include advertising in its programming, a long-standing statement of co-founder and co-CEO Reed Hastings. Rhimes and Netflix declined to comment.

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Netflix launched a low-cost ad-supported service in the US and other countries this week. Netflix has decided to provide a level of support based on revenue and subscriber growth as a result of the global coronavirus pandemic. Netflix has approximately 223 million subscribers worldwide.

Netflix officials have told producers that they have posted midroll ads at the right times with each episode’s story, according to people familiar with the matter. They’ve told employers they don’t expect many people to sign up for the regular ad campaign because subscribers don’t pay for the business, the people said.

“We’re using our local subscription teams to find those natural cuts so we can deliver the ad at a minimum,” Netflix CEO Greg Peters said in October.

However, some manufacturers were not happy with the explanations. Intrepid Pictures makes horror movies and series for Netflix. That’s a bad thing for ad placements because they take the stress out of building. One 50-minute episode of Intrepid’s “The Haunting of Hill House” consists of five long shots, one sketch.

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That episode, the sixth in the series (“Two Storms”), is ending with a three-minute long commercial break, made up of three ads each, at the $6.99 level. One of the main reasons why Intrepid signed an exclusive deal with Netflix in 2019 was the streamer’s run on advertising, according to people familiar with the company’s opinion. A spokesman for Intrepid declined to comment.

There are no cash dividends

Not all users are upset with Netflix. Ryan Murphy, who signed a $300 million deal with Netflix in 2018, makes his episodes in three works, leading to a simple campaign, as he is familiar with his work. Not even Scott Frank, the creator of “The Queen’s Gambit,” is as familiar with his idea.

The Directors Guild of America and the Writers Guild of America declined to comment for this story.

Depriving ad revenue, which means consumers can stop streaming, could be a way to anger angry creators who think Netflix has changed the rules. midgame. But Netflix won’t do that, according to those familiar with the matter. Netflix has its own original program and can insert ads where and when it wants, giving producers a little leverage before being sued.

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However, media and entertainment companies have avoided the risk of advertising or agreed to share the revenue in some cases. It appears that Warner BrosHBO Max decided not to include midroll advertising in the HBO program to avoid the risk of canceling the prestigious program. When HBO sold shows to line-ups in syndication, such as “The Sopranos” that aired on A&E, producers were able to share in the revenue, such as with the one who is familiar with the object. An HBO spokeswoman declined to comment.

Some creators who created content for Disney + only have the right to participate in the promotion of income, depending on the contract, as it is known. Disneypolicies. But unlike Netflix, Disney has cable companies that can stream the Disney+ program with companies. A Disney spokesman declined to comment.

– CNBC Sarah Whitten give this article.

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