On Monday, Netflix announced that it had acquired the digital rights to Seinfeld. The streaming service took to Twitter to announce the news, writing:
"Jerry & Elaine & George & Kramer & Netflix. All 180 episodes of the Emmy-Award winning Seinfeld are coming to Netflix — worldwide! — starting in 2021."
This deal comes at a critical time for Netflix. The streaming giant recently lost both Friends and The Office. Currently, Seinfeld streams on Hulu in the U.S. and Amazon Prime everywhere else. Friends is moving to AT&T's upcoming streaming service in 2020, while The Office will be available in 2021 on NBCUniversal's future streaming service.
Seinfeld is, of course, one of the most beloved and popular shows in television history. The show about nothing aired its 180 episodes between 1989 and 1998. TBS has the national syndication rights for the show, and a myriad of local independent stations also air the sitcom. With this acquisition, Netflix aims to bolster its content library and attract more subscribers.
The streaming service reportedly paid far more than $500 million, according to the Los Angeles Times. Reports suggest that Netflix was "particularly aggressive" in its bid for the show about nothing and beat out rival bidders including Hulu, NBCUniversal, and WarnerMedia, among others. This move not only reflects Netflix's strategy to secure iconic content but also highlights the competitive landscape of streaming services.
This brings us to the question: How much did Jerry Seinfeld and Larry David make in the Netflix deal? From the very start of the show, Jerry Seinfeld and Larry David each owned 7.5% of the show's backend equity points. At the peak of Seinfeld's success in the mid-1990s, they renegotiated their deal with NBC and had their points boosted to 15% each. Jerry Seinfeld and Larry David are each walking away with $75 million from the Netflix deal.
So for Jerry, his total to-date earnings from Seinfeld include $60 million in salary (the same as $100 million today) and about another $875 million in DVD sales, merchandise, syndication, and streaming deals. For Larry David, it's a bit harder to quantify, since we don't know how much he made for producing and writing for Seinfeld. In an average year, he makes $40-50 million between syndication, DVD sales, merchandise, and other platform royalties. And, just like Jerry, he adds another $75 million to his total salary, DVD, merchandise syndication, and streaming deals to bring the total to $875 million.
Table of Contents
- Seinfeld Acquisition by Netflix
- Impact on Streaming Services
- Financial Rewards for Creators
- Final Thoughts
Seinfeld Acquisition by Netflix
Netflix's acquisition of Seinfeld marks a significant moment in the streaming industry. As one of the most iconic sitcoms, its arrival on the platform is expected to attract both new subscribers and reignite interest among long-time fans.
This deal not only reinforces Netflix's strategy of securing popular and nostalgic content but also responds to the increasing competition within the streaming market. With heavy hitters like Hulu and Amazon Prime vying for viewership, acquiring Seinfeld helps Netflix maintain its leading position.
Impact on Streaming Services
The acquisition of Seinfeld is a critical move for Netflix, especially as it faces the loss of other beloved shows like Friends and The Office. Such strategic content decisions reflect the shifting dynamics in the streaming landscape.
As viewers increasingly turn to streaming platforms for entertainment, the competition for exclusive rights to popular shows intensifies. This trend indicates that streaming services will continue to prioritize acquiring iconic content to attract and retain subscribers.
Financial Rewards for Creators
For creators like Jerry Seinfeld and Larry David, the financial implications of this deal are substantial. With each earning $75 million from the Netflix acquisition alone, it highlights how successful shows can lead to significant financial rewards for those involved.
The structure of the deal and ongoing royalties from syndication and merchandise further exemplify the lucrative nature of successful television shows. It also raises questions about the value of creators in an evolving media landscape.
Final Thoughts
The acquisition of Seinfeld by Netflix is not just a win for the streaming giant but also a pivotal moment for the entertainment industry. As viewers seek familiar content in a crowded marketplace, the impact of such strategic acquisitions will continue to resonate.
As we look towards the future of streaming, the financial successes of creators like Seinfeld and David underscore the importance of intellectual property and the lasting appeal of classic television shows.
