Apple mulling new deal terms to change how it pays creators of its TV+ shows

As the frantic investor hype around streaming dies down, every studio is re-evaluating the way they do business, what shows they are commissioning, and their relationships with creators.

The financially-rich Apple has less pressure to do this than most, but we have seen changes at Apple Studios too, albeit perhaps to a lesser extent compared to other streaming outlets. The Ankler reports today in its Dealmakers column that Apple is talking to producers and agents about a potential new deal structure for their originals going forward.

What Apple is proposing is a new structure of compensation for when shows are continued, based on success metrics. Right now, all shows receive the same backend payouts based on duration. That is, how long a show runs for. Regardless of viewership or audience reach, a show that is recommissioned for a second season receives essentially the same percentage payout rewards as another show on it second season, under the current contracts.

Apple is purportedly discussing an alternative structure where backend payouts are more closely linked to success, “in an effort to align better with what talent wants”. There would be less upfront payouts, but more bonuses linked to hitting certain goals in terms of how the show is received when it airs.

Ideally, this gives increased payouts for shows that connect with audiences and draw viewership, improving the incentives for creators and producers to make better content. It could also give Apple more flexibility, allowing it to greenlight additional seasons of some of its less popular shows, without stretching its overall commissioning budget so much. It may also be able to take more risks on more out-there and daring projects, if it isn’t on the hook for as significant upfront payments.

Naturally, some in the industry are skeptical that Apple is simply trying to find a way to pay out less overall. However, The Ankler says so far Apple Studios talks with agents and talent is being warmly received. But the discussions are still early, and nothing is yet finalized.