There is a reason why directors and writers continue to release their works on Netflix, where there is no incentive system.
Netflix usually pays the full production cost in advance, and an additional amount of 10-20% of the production cost is paid as a fixed amount. Therefore, when the production company finishes producing the content, the intellectual property rights of the content will be transferred to Netflix.
At this time, Netflix does not ask for losses after the work is released, but does not allocate incentives separately.
As a result, the Netflix series ‘Squid Game‘, which recently hit worldwide, did not receive any incentives. ‘Hellbound‘, which topped the world charts within a day of its release, is also expected to be the same.
No matter how successful a work released on Netflix is, there is no significant benefit to the producer. Still, there are clear reasons why star directors and writers go to Netflix.
Director Kim Seong-hoon, who directed the ‘Kingdom‘ series on Netflix, said, “The existence of ‘Kingdom’ itself was possible because of Netflix.” praising Netflix highly.
Writer Kim Eun-hee, who wrote the ‘Kingdom‘ series, also said, “I wondered if it was okay that they didn’t interfere with the filming direction this much”. She explained why she was able to create a work comfortably on Netflix, saying, “They put a lot of trust in me and I already thought of Netflix as one team with us since the time I began writing the script. Also, rather than assessing what I wrote, they try to think of what they can do to help.”
In addition, the fact that Netflix allows free creation and that free scripts can be written without worrying about PPL are the reasons why directors and writers come to Netflix.