|
In response to
"I remember that math. There were so many assumptions there. -- (edited)"
by
Inigo
|
But that's the difference between the archaic system that has middlemen vs. the vertical integration of Disney+.
Posted by
David (aka David)
May 13 '21, 10:21
|
The path to profitability had to factor in that studios must share with exhibitors in North America and then pay translation/government expenses abroad.
With Disney+, they make a movie and distribute the movie for a few.
The infrastructure costs will occur with or without the movie, as the service pays for itself. So, the path to profitability is as simple as sales vs modest expenses.
Each sale recoups somewhere between 76% and 92%, depending on how Disney wants to count it for accounting purposes.
There's new math here, and we all need to learn it.
|
Responses:
|