From an article about a filmmaker that was blackballed by Netflix after he rejected their all-revenue streaming deal. It was for a documentary though, so the numbers might be lower than it would be for a feature film.
http://www.businessinsider.com/netflix-blacklisted-do-not-resist-2016-12
The deal for worldwide rights to the film was in the mid-six figures, and the agreement stated that Netflix would retain all creative approvals over the final cut and the film's title. It also had a budget line of $70,000 for "finishing" (money for additional editing or other changes Netflix saw fit).
These are general terms most first-time filmmakers will encounter at any company looking to buy their film. Numerous filmmakers told Business Insider, however, that there's often an open dialogue between the filmmaker and the buyer about suggested changes before signing an agreement. Negotiations can, of course, vary from filmmaker to filmmaker, especially based on someone's experience and profile.
"So I'm reading the deal and it doesn't specify changes," Atkinson said. "It says that they have full control and they can change the title. The deal is time-stamped for high noon on the day of our premiere, so now the clock is ticking. In my mind I'm thinking maybe they are catering to a certain audience and they want to change the film. I was so overwhelmed and unprepared to be in this position."
'Trust us'
Atkinson was unable to land a sales rep, which at this point in a movie's life is an essential ingredient (though he was able to get an entertainment lawyer).
Sales reps have an understanding of the marketplace and use their connections within the industry to get the film they're representing the best deal both domestically and internationally. A rep would have told Atkinson that the figure he was offered was substantially higher than what he would get from any of the independent film distributors that would be tracking his film at the Tribeca Film Festival, or from a documentary-heavy network like HBO or A&E.
Atkinson told Business Insider that colleagues in the industry who have either worked with Netflix or know people who have worked with the company told him that Netflix was giving him a low offer.
Business Insider spoke with documentary insiders and sales agents who agreed that it was a low offer by Netflix standards but respectable for a first-time filmmaker (some filmmakers Business Insider spoke with said they would have taken the deal in a heartbeat).
With the deadline for the deal quickly approaching, Atkinson's lawyer, Jody Simon, a partner at the firm Fox Rothschild, was able to negotiate the price of the movie up $100,000 more, but the lawyer also relayed to Atkinson a sobering fact about how Netflix negotiates.
"During the course of the conversation our lawyer had with the Netflix lawyer, he got a lecture, as he described it, from the Netflix lawyer about the fee because he was pushing back about how it seemed incredibly low for an all-rights deal," Atkinson said. "The Netflix lawyer lectured him on how it was their algorithm that determined the price of the film and that there's really no discussion to be had because this algorithm determined how much the film should be worth and that basically was the end of discussion."
http://www.businessinsider.com/netflix-blacklisted-do-not-resist-2016-12
The deal for worldwide rights to the film was in the mid-six figures, and the agreement stated that Netflix would retain all creative approvals over the final cut and the film's title. It also had a budget line of $70,000 for "finishing" (money for additional editing or other changes Netflix saw fit).
These are general terms most first-time filmmakers will encounter at any company looking to buy their film. Numerous filmmakers told Business Insider, however, that there's often an open dialogue between the filmmaker and the buyer about suggested changes before signing an agreement. Negotiations can, of course, vary from filmmaker to filmmaker, especially based on someone's experience and profile.
"So I'm reading the deal and it doesn't specify changes," Atkinson said. "It says that they have full control and they can change the title. The deal is time-stamped for high noon on the day of our premiere, so now the clock is ticking. In my mind I'm thinking maybe they are catering to a certain audience and they want to change the film. I was so overwhelmed and unprepared to be in this position."
'Trust us'
Atkinson was unable to land a sales rep, which at this point in a movie's life is an essential ingredient (though he was able to get an entertainment lawyer).
Sales reps have an understanding of the marketplace and use their connections within the industry to get the film they're representing the best deal both domestically and internationally. A rep would have told Atkinson that the figure he was offered was substantially higher than what he would get from any of the independent film distributors that would be tracking his film at the Tribeca Film Festival, or from a documentary-heavy network like HBO or A&E.
Atkinson told Business Insider that colleagues in the industry who have either worked with Netflix or know people who have worked with the company told him that Netflix was giving him a low offer.
Business Insider spoke with documentary insiders and sales agents who agreed that it was a low offer by Netflix standards but respectable for a first-time filmmaker (some filmmakers Business Insider spoke with said they would have taken the deal in a heartbeat).
With the deadline for the deal quickly approaching, Atkinson's lawyer, Jody Simon, a partner at the firm Fox Rothschild, was able to negotiate the price of the movie up $100,000 more, but the lawyer also relayed to Atkinson a sobering fact about how Netflix negotiates.
"During the course of the conversation our lawyer had with the Netflix lawyer, he got a lecture, as he described it, from the Netflix lawyer about the fee because he was pushing back about how it seemed incredibly low for an all-rights deal," Atkinson said. "The Netflix lawyer lectured him on how it was their algorithm that determined the price of the film and that there's really no discussion to be had because this algorithm determined how much the film should be worth and that basically was the end of discussion."
