Hollywood demands a stake in Netflix
As Netflix prepares to launch its ad-supported streaming service, Hollywood is seeking a cut of the action.
Hollywood studios are seeking a cut of the revenue from Netflix's new ad-supported streaming service, which debuted on Wednesday.
The streaming giant has long been a thorn in the side of the movie and TV industry, upending traditional business models and eating into traditional channels' market share.
Now, with Netflix set to debut its ad-supported streaming service in the coming months, Hollywood is seeking a piece of the pie.
The service, which is free to watch for Netflix subscribers, offers a selection of movies and TV shows with commercials. It is similar to other ad-supported streaming services like Hulu and Roku.
Hollywood studios are reportedly unhappy with the terms of the deal, which they believe are unfair. Netflix has not commented on the reports.
The new service could be a major threat to traditional Hollywood studios, which are already struggling to compete with the streaming giant.
Ad-supported streaming is a new frontier for Netflix, and one that could potentially generate billions in revenue for the company. And Hollywood wants its cut.
The movie and TV industry has long been at odds with Netflix, but the ad-supported streaming service could be a game-changer.
Hollywood is seeking a cut of the ad revenue that Netflix is expected to generate from its new service.
The move is a departure from the traditional model, in which Hollywood studios have been paid a licensing fee by Netflix for the right to stream their content.
But with ad-supported streaming, Netflix will keep the lion's share of the revenue, and Hollywood wants a piece of the pie.
The studios are seeking a "rev share" arrangement, in which they would receive a percentage of the ad revenue generated by their content on Netflix.
It's unclear how much Hollywood is seeking or how willing Netflix is to negotiate.
But with billions of dollars at stake, it's safe to say that the ad-supported streaming service could be a major game-changer for both Netflix and Hollywood.
The new ad-supported streaming service from Netflix is a major threat to traditional Hollywood studios. The studios are seeking a cut of the revenue from the service, which they believe is unfair. Netflix has not commented on the reports.