Warner Bros. DiscoveryCEO, David Zaslav is again making waves after reportedly expressing displeasure with Netflix over their payment terms for shows purchased from Warner Bros. Television. The developing rift could lead to a fallout between the two and the emergence of a new player in the ongoing streaming carousel.
Warner Bros. Discoveryis one of the largest outside suppliers of television content for Netflix, making the relationship invaluable for both sides. The studio has delivered several top-rated series to the streamer, such asthe engrossing serial killer seriesYouandThe Sandman, which premiered on the streaming platform in early August. Netflix recently renewed the fantasy drama led by Tom Sturridge for a second season, which appears to be the spark that has ignited Zaslav’s boiling displeasure.
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As reported byDeadline, Zaslav is not pleased with the current payment structure implemented by Netflix, which pays producers over 18 to 24 months.The renewal ofThe Sandman, an expensive endeavor for the studio, has sparked much of Zaslav’s frustration because of the elongated timeframe the studio will have to wait to receive total compensation. The payment structure, however, was established by Netflix a few years ago, so the terms should be familiar to Zaslav.
However, the Warner Bros. Discovery CEO has not been shy about stating his displeasure to colleagues over the last few weeks, reportedly advising teams to pause selling finished projects to Netflix for an undisclosed period. It is unclear what this means for Warner Bros. Television content and the stability of the studio’s relationship with Netflix. “It’s obviously the way the industry works and has worked with Netflix,” disclosed a Warner Bro. Discovery insider. “He’s paid big numbers, and the company has been happy with that. It’s like he suddenly discovered what the payment terms were.”
Warner Bros. Discovery declined to comment on the situation, which could ignite a shift in the current streaming atmosphere. It is premature to assume the disagreement could lead to more significant consequences from a business standpoint. Still, Zaslav has built a reputation during his brief tenure as CEO for making controversial and unexpected moves.The Sandmanlooks to hit Netflix for a second season, with no indication that a shift is on the horizon. It will be intriguing to see if anything unravels in the coming days as the two powerhouses look to hopefully resolve the debatable disagreement.
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