According to a Bloomberg report, Apple is looking to develop a new method of paying its TV and film talent in collaboration with Hollywood Studios. For years, Apple has claimed they have paid their production staff “as though all their projects were successful.” However, they are now looking to move to a system that pays actors based on performance.
According to a report by Bloomberg, Apple plans to alter the pay structure for performers and production staff.
The tech giant is working with Hollywood Studios to switch to a performance-based method for compensation.
Bloomberg reports that Apple has traditionally compensated “people as though all their projects were successful” but will now “begin basing pay on how well a series or movie performs.”
Navigating Apple’s New Strategy
Apple’s proposal states that performers and crew will receive bonuses if a show or movie succeeds. These bonuses will then be determined by a point system that considers three factors:
- The number of subscribers the show attracted
- The length of time viewers spent watching
- The cost of producing the show/movie in relation to its audience size.
The members of a top-ranking series or film could share up to $10.5 million worth of bonuses.
Certain Hollywood executives are in favor of the new pay structure, with United Talent Agency Chief Jeremy Zimmer telling Bloomberg,
“When you get $10 million whether your show is good or bad, you have less incentive to do it well.”
Apple appears to be aiming to drastically lower expenses, and other major streaming services like Netflix and Amazon are attempting to follow suit.
From Guaranteed Pay To Performance Metrics
The new pay system that Apple is proposing is not yet finalized. They are still seeking advice from Hollywood Studios and executives.
However, the implementation of such a strategy could significantly impact actors and staff.
In order for Apple and other streaming services to give performance-based bonuses, performers may have to accept lower initial pay rates. This could potentially undercut actors, giving streaming services an excuse to pay them less than what their work is worth.
Apple TV has also become notorious for not properly promoting its content.
How will bonuses be awarded to performers and production crew if Apple doesn’t do enough to promote its content?
Ultimately, while a performance-based compensation system could be better for the studios’ bottom line, it may not be for everyone else.
In late 2023 actors and writers went on strike, demanding fair pay and job security. If not handled appropriately, Apple’s new strategy could exacerbate these wage disputes, leading to further dissatisfaction among the hardworking members of the TV & film industry.
Actors are not puppy dogs you can ask to perform a trick and dangle a treat in their faces as a reward. Most are extremely serious about their craft. They do not need an incentive to do their job. Furthermore, it is not solely an actor’s responsibility to work hard. What a large and well-resourced corporation, such as Apple, does or does not do also has a critical impact on the outcome of any production. Perhaps even more so.
Ultimately, Apple needs to consider who is at the forefront of receiving benefits from their proposed system and who may get the short end of the stick.
