Ben Affleck and Matt Damon Break Netflix's Monopoly: "Staff Also Get Box Office Bonuses"

Groundbreaking Clauses in "The Lip" Contract
A Brake on the "Buy-out" Practice
Korean Industry Watches Closely After "Squid Game" Experience

Movie Still Cut of "The Lip"

Hollywood stars Ben Affleck and Matt Damon have put the brakes on Netflix's solid "profit monopoly" structure.

According to The Hollywood Reporter on January 10 (Korean time), the production company "Artists Equity," founded by the two, enforced a new revenue-sharing model when selling the distribution rights for their new film "The Lip" to Netflix. They reached an agreement to provide bonuses based on box office performance not only to the lead actors and director, but also to the production crew and supporting actors.

This is a decision that overturns Netflix's traditional "buy-out" practice. Typically, Netflix pays about 110% of the production costs upfront, but in return, it monopolizes the intellectual property (IP) and all subsequent box office revenue. As a result, even if a global hit is produced, the production team has not been able to earn additional profits.

Netflix accepted Artists Equity’s view that "sharing the fruits of success with everyone involved on set leads to higher-quality content." Dan Lin, head of Netflix’s film division, expressed support, calling it "an innovative model that gives creators a sense of ownership."

This contract carries significant implications for the Korean content industry as well. Despite the global success of works like "Squid Game," there have been ongoing criticisms that production companies and staff remain stuck with compensation at the level of subcontractors. Attention is now focused on whether this "change in distribution" that began in Hollywood will influence the adoption of standard contracts and revenue-sharing discussions in Korea.