Even though Landgraf said he’d prefer not to hand any content to Netflix, his company in July made a deal giving the streaming service exclusive rights to its American Crime Story series, pocketing what is said to be about $50 million just for the lauded first installment, The People v. Still, few can ignore the billions that Netflix has thrown around.
Relativity emerged from Chapter 11 protection in March.) And there are a lot of competitors.” (Worth noting: Brunetti now is an executive at Relativity Media, which has been in a legal dispute with Netflix over the streamer’s so-far-unsuccessful efforts to escape a rich deal for Relativity films after the latter filed for bankruptcy in July 2015 - before Brunetti was hired. “They had the first-mover advantage with digital streaming and giving artists more power, but now they’ve become like any traditional network or studio. “There’s nothing special about Netflix anymore,” says Brunetti (who has stated publicly that he has shorted Netflix stock). House of Cards producer Dana Brunetti also refused to comment on the Willimon exit, but the outspoken executive does say Netflix no longer offers the artistic freedom that lured the creators of the drama there.
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Sources say, for example, that Beau Willimon, who adapted the British series House of Cards to give Netflix its first breakout original, was taken off the show after its fourth season because he pushed back hard on notes from Netflix execs. Some assert that the latter already has happened. The clear implication: If Netflix amasses such clout, the generous deals will start to evaporate and creative freedoms could be curtailed. “I think it would be bad for storytellers in general if one company was able to seize a 40, 50, 60 percent share in storytelling,” said Landgraf.
Another was offered by John Landgraf at the July gathering of the Television Critics Association in Beverly Hills, where the FX Networks chief warned that Netflix could be bucking for a Silicon Valley-style near-monopoly in entertainment, such as that enjoyed by Google in search or Amazon in shopping. Netflix generally declined to comment on THR‘s questions but asserts that it and other streaming services have sparked the creation of “huge numbers of programs,” as one company insider puts it, generating more opportunity and money for the industry. Hastings and Orange Is the New Black creator Jenji Kohan at the 2014 AFI Awards Luncheon in Beverly Hills. If backends go away, what’s the future? This is why CAA and WME have diversified.” “We love the money and we can still grow our clients ,” says one agent. And agents worry that as Netflix elbows out competing buyers, the company’s growing insistence on buying up all rights to its original programming around the world will do away with the profit participations that on breakout shows (such as Modern Family) provide steady income in an unsteady industry. Studios and cable channels fret that the company, with its 83 million global subscribers, is sucking up so many eyeballs and bidding up prices for programming so high that they won’t be able to compete. But some executives, producers and agents who rely on deals with the streaming giant nonetheless increasingly view Netflix as an existential threat. The backlash is real but muted - mostly because few are willing to risk the wrath of a company that is spending $6 billion a year on programming and scored 54 Emmy nominations this year.
They used stuff from the studios and became important. Nobody really thought they’d be a competitor on the originals market. Do we even need a cable sale?’ They all got addicted to crack. “Out of the blue Netflix comes into the market and says, ‘We’re going to give you a number ,’ ” says one television agent.
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Netflix and its chief content officer Ted Sarandos are at once a savior, offering a giant gush of money to license shows that in some cases were past their prime or even out of production, and a terrifying competitor to studios. Still, at a time when business is tough all over in the entertainment industry, there is a lot of gratitude for a deep-pocketed buyer that is snapping up an array of material, much of which might not find a home elsewhere. “Really celebrating or valuing some of their successes - they just don’t do that,” says one agent. That’s a far cry from the way relationships long have been managed in Hollywood, but sources who do business with the streaming service say the silence was not atypical.
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