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Netflix reduces payments for comic specials

Netflix has become an important platform for comedians, funding a series of specials and offering them to its audience of over 220 million subscribers.

Now, the streaming giant is changing the way it offsets some of the comics it features, a move that could cut costs and pass some financial burden to artists, giving them more control over their work, people familiar with say.

In recent months, Netflix started licensing new specials from some comedians for two years for around $ 200,000 instead of buying them outright, which is more expensive, people said.

Previously, many comics received a lump sum payment, often up to $ 1 million, which helped pay for production costs.

Netflix said it lost nearly a million subscribers in the June quarter, citing increased competition. The company told investors it plans to keep its content spending in the current $ 17 billion range over the next few years.

The on-line streaming company has invested heavily in comedy programming, becoming one of the leaders of the genre.

Some of the Biggest Netflix comedy stars, like Chris Rock and Dave Chappelle, can get paid tens of millions of dollars for a special while the company continues to pursue some deals involving the creation and purchase of special stand-ups.

Writing by Tersoo Nicholas; Editing by Annabel Nwachukwu