There’s a reason they call it “show business,” and Ben Affleck, one of the biggest stars in the entertainment industry, is putting that into action in a literal way.
With his start-up launched two years ago called Artists Equity, Affleck, his long-time friend and sometimes co-star Matt Damon and investor Gerry Cardinale of RedBird Capital have sought to remake the way that people involved in productions are paid and the stake they take in those endeavors. The model is aimed at improving accountability from actors for the success of their projects.
“It’s not for everybody. It’s for people who are willing to bet effectively on themselves,” Affleck said Wednesday at CNBC’s Delivering Alpha conference. “You’ve got to invest yourself in this, but if you win, there’s a real win out there for you that’s economically meaningful.”
The company has scored some high-profile victories so far.
There was “Air,” a drama that showed how Nike won the endorsement of NBA legend Michael Jordan by appealing to his family. Along the way, there have been others, including more sports dramas and even a Dunkin’ Donuts campaign featuring Affleck and Damon.
Affleck spoke enthusiastically about the effort and its transformative nature for the business.
“Listen, we’re going to sit you effectively, side by side with us, and we’re gonna give you more latitude and more breadth of control,” he said of the approach to negotiate incentives on both sides of the camera, including those on the business end. “Not so I can tell them what to do, so that they can be empowered to do their best, and then you want to incentivize so that they care about promoting,” Affleck said.
For his part, Cardinale said the industry is finally reaching a place where the motto “content is king” truly holds, now especially because performers and studio heads can share in the benefits of a successful production.
“Most actors, they don’t care about the outcome. They get their fee, right? The agents get their fee. There’s a whole ecosystem of unaccountability,” he said. “Content has the ability to be king. What’s really interesting is that individuals actually can be intellectual property in and of themselves.”
“The one thing that’s new, and which is so interesting to me, is now the talents at the table,” he added. “That genie is never going back in the box.”
