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 "winner-takes-all" profit structure.

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

This is a reversal of Netflix's existing "buy-out" contract practice. Netflix has typically paid about 110% of the production cost upfront, but in return has monopolized intellectual property (IP) rights and all future box office revenue. As a result, even if a project became a global hit, the production team could not earn any additional profits.

Netflix accepted Artists Equity's view that "sharing the fruits of success with everyone on set leads to higher-quality content." Dan Lin, head of Netflix's film division, expressed his 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 global hits like "Squid Game," production companies and staff have continued to receive compensation at the level of subcontractors. Attention is now focused on whether this "change in distribution," which began in Hollywood, will influence the adoption of standard contracts and revenue-sharing discussions in Korea.