Netflix to license comedy specials for 2 years

Netflix to license comedy specials for 2 years

Netflix Inc. NFLX has turned into more than just a streaming service for TV shows and movies. What Happened: The streaming giant is going to change how it compensates comedians who have their shows on the channel.

Netflix will license new comedy specials for two years for roughly $200,000 instead of buying them outright, as previously Netflix has done for up to $1 million, according to the Wall Street Journal.

Sources familiar with the agreement said comedian Whitney Cummings, who released her newest special this summer with Netflix called Jokes, struck a two-year deal with Netflix.

The artist will be able to use it for future work as the agreement comes to an end, according to the Wall Street Journal.

With Netflix becoming more conscientious about its capital spending, comics such as Bryan Callen are going to Alphabet Inc.'s GOOGGOOGL subsidiary, YouTube, to avoid losing their rights to their specials, as well as leaving money off the table. Andrew Schulz, a Flagrant podcast host, has turned to Moment House to privately release specials without having to cut out jokes, which streaming services may find too offensive.

Since Netflix is not offering specials, comics may find it harder to cover production costs, leading high-profile comics to venture out and release specials on their own.