I have been asked for my two cents on the impact on content created for streaming services on composers. It is confusing, complex and hard to predict. But I will try my best.
As far as I can foresee, the biggest impact would be on composers who rely primarily on PRO royalties from broadcast TV hoping to find a financial equivalency on streaming content.
Currently, the Performance Rights Organizations pay a fraction per program of what would be paid to a broadcast program. This is because the licenses paid to the PROS from the streaming services are less and those dollars are then divided up among a massive body of works housed on the service.
I would not suggest relying on significant PRO income when working on direct-to-streaming product. Money needs to mainly be generated via upfront fees. For similar reasons, it is likely that PRO income is likely to be reduced overall in the future as streaming becomes the dominant means of distribution of films outside of their initial theatrical release and the primary source of television series distribution.
Composers should plan accordingly. Old business models relying on huge broadcast public performance income will not work in a world with greatly diminished broadcasting public performance.
WRITER’S SHARE BUYOUT
As a side note, anyone or any company can offer to purchase any aspect of a composer’s writer’s share of income, including streaming income. The pros and cons are situational and personal. To my knowledge, Netflix does not make buying out the streaming service writer’s share a condition of employment. If they make an offer to purchase it, they are no different than anyone or any company making such an offer. And the pros and cons would need to be weighed by each individual for situational and personal reasons.
STREAMING IMPACT ON MUSICIANS
Regarding musicians. The flood of Made-for-streaming content will greatly increase employment opportunities for musicians. But, unless the AFM leveraged themselves into receiving residual income off these made-for-streaming product, they will see nothing beyond their initial fees. AFM musicians benefit when theatrical films and broadcast tv shows end up streaming as that triggers Secondary Market Residuals forming a whole new income source.
I HOPE THIS IS HELPFUL