The studio, the producer, and the distributor are the three major entities in the content creation industry. It usually starts with the producer who decides to make a film, television show, or other projects. Either they put up the money or they find investors to help them hire everyone involved. Producers frequently collaborate with a studio because of the high expense.
To help a project come to fruition, the studio contributes money, facilities, staff, and their reputations. When the project is finished, it is given to a distributor, who distributes the content to the target audience. Some producers are self-funded and/or have their own infrastructure. In real estate, the producer is the builder, the studio is the lender, and the distributor is the salesperson.
Netflix started out as a distribution company. They paid studios and producers to distribute their content to an audience, with a portion of the proceeds going to the actors. They made enough money from this venture to start generating material, and they began directly paying talent or sponsoring outside producers. Netflix has evolved into a studio in many ways. They have their own set of stages, employees, and so forth. They’ve merged the roles of builder, lender, and real estate agent into one.
Actors in this ecosystem are now paid in two ways. They are first paid for their performance. Actors are compensated for their work in front of the camera before the project is released or even completed. Second, they are paid when their work is reused or re-aired. Actors are paid residuals when their performances are reruns (the initial showing is included in the original pay). They get paid when their film is presented on an airline flight or streamed. Netflix is frequently the entity that pays both their original session fee and residuals because they have taken on several responsibilities in the production process.
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