Disney is removing original content from its streaming platforms to cut spending on residual payments to writers and actors. The company is also claiming the purge will result in $1.5 billion in losses — which could amount to a substantial tax break.
  • pwnicholson@lemmy.worldEnglish
    1·
    2 years ago

    And this is why I wish stuff was still released on physical media and I always prefer to own it outright.

  • elbowdrop@lemmy.worldEnglish
    1·
    2 years ago

    Use ebay. How else was I going to find Going Overboard. Adam Saddlers first and best movie. I wanna slap your cat.

  • style99@kbin.social
    1·
    2 years ago

    Interesting, to be sure:

    Outside observers say that the numbers don’t add up behind Disney’s decision to take down the shows and claim a $1.5 billion impairment charge. That’s because Disney is claiming two contradictory things: both that the assets were producing so little value that it’s cheaper to destroy them than to keep them and that the assets were worth $1.5 billion.

    “I cannot figure out how they can possibly get to $1.5 billion, because they should have almost no unamortized costs” under the 2017 tax bill, said David Offenberg, a professor of entertainment industry finance at Loyola Marymount University.

    • givesomefucks@lemmy.world
      2·
      2 years ago

      A big part is there’s apparently nothing requiring them to disclose streaming numbers

      So it’s like how trump does his taxes. They just claim whatever benefits th in the moment. So as a “loss” it’s worth a shitton, but as a “profit” it’s worth nothing.

      It’s why actor/writer residuals are so shit, the billion dollar companies do t have to tell anyone how much it actually costs or makes.

      • RocksForBrains@lemm.ee
        1·
        2 years ago

        Regulators and investors are behind the curve in regard to entertainment technology. Big business is taking advantage of everything not written into an ironclad contract.

        Their big move upcoming is offloading as much as they can from D+ to Hulu, because if the contract only discusses streaming on D+ than there are no royalties to pay through Hulu.