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I don't understand how they could post a half-billion dollar loss on content they already own. How are they accruing those losses? From paying too much to produce original content? They could easily lean on their extensive back catalogue for many years.
They keep spending money remaking movies they already've made and turning them into flops.
 
I don't understand how they could post a half-billion dollar loss on content they already own. How are they accruing those losses? From paying too much to produce original content? They could easily lean on their extensive back catalogue for many years.

In corporate accounting they have to PAY the division that produced the content. They don't get it for free. Overall the entire organization is making money, but that particular division is not bringing in enough income to cover its expenses.

Other examples of this would be like if a Camera Man from production worked in the Park taking tickets for 30% of the year, the Parks division would have to pay (via intracompany transfer) Production for his time/salary.

Also, this is legally required. It is one of the things that prevents companies from hiding corporate fraud and ensuring fiduciary responsibility when investors review balance sheets.
 
It’s about time these streamers introduce a family plan.
Somthing akin to Spotify family.
One plan with multiple accounts.
Disney+ allows seven profiles on one subscription, four of which can be watching in parallel at any given time. However, they have to be in the same household, and that's what Disney will probably be "cracking down" on based on location data.
 
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We pay so our Granddaughter can watch when she is visiting. Price is going up and now she can’t finish a movie at home (on her iPad). Frankly, the new content is garbage. Mouse won’t be in this house.

2024 is going to be the year when folks start cutting streams; Amazon, ESPN, Paramount, Peacock, YouTube, Hulu, BritBox, NFL, Max … and you still have to pay for internet. Just saying no.
 
What irritates me is I have two houses. Why should I pay double for a service? I can only be at one house at a time.
Just not worth it. I remember when I would complain about DirecTV and cable. Streaming was gonna save so much money.
Exact opposite is the case.
Amazon Prime, Netflix, Disney+, Max, Peacock, Paramount+, Discovery, Hulu, Motor Trend, Discovery Plus... I have them all and still struggle to find a decent movie or show to watch more often than not. Now they want to charge me per location?!?! Nope.
Ready to drop the lot and go back to cable.... WAY cheaper.
 
You have to constantly create new content to bring in or keep subscribers; Many people have already seen Disney's old catalog of content. You cannot rely on the back catalog. This is true of every major streaming service providers (i.e. Netflix, HBO Max, Paramount+, Disney+, Apple TV+, Amazon, etc).

Production costs have gone up significantly these past few years. A decade ago, it typically cost $2 million to $5 million an episode (e.g. House of Cards; Orange is the New Black). You now have studios spending $25 million per episode or more. Amazon spent $465 million on season 1 (8 episodes) of The Lord of the Rings: The Rings of Power; That's $58.125 million per episode!

Why do you think all of them are raising prices, cracking down on password sharing, offering ad-supported tiers, etc?
I don't understand how they could post a half-billion dollar loss on content they already own. How are they accruing those losses? From paying too much to produce original content? They could easily lean on their extensive back catalogue for many years.
They must pay the producers a negotiated rate to carry the content, even if Disney are the producers. So Disney+ must pay Disney Animation Studios, 20th Century Studios, Touchstone, Disneytoon, etc. and all the affiliated producers of the content, which triggers profit sharing payments and residual payments.

I never thought about that until they started pulling content OFF Disney+ to reduce the losses, and they explained why they were doing it.

Personally I think they should move to a VOD model with low rental rates for obscure content rather than pulling it off.
 
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if I buy a book I can lend it to a friend. kinda sick of people normalizing digital goods as these rented services from companies we have no rights to.

If I'm paying for it I'll do what I want with it
“if I subscribe to a newspaper I can lend it …” would be more analogous to a streaming service scenario, maybe.
 
Well, back to sailing the high seas I guess.

I have never understood why password sharing was considered legitimate on a paid for service. I know Netflix actively encouraged the practice for a while, which makes it difficult to accept them removing the privilege. However in this case it was never a legitimate option and we should be prepared to pay for an ad free service.
You paid for 8 users and a certain amount of streams. What’s illegitimate here?
 
if I buy a book I can lend it to a friend. kinda sick of people normalizing digital goods as these rented services from companies we have no rights to.

If I'm paying for it I'll do what I want with it
Your analogy is way off. You didn’t buy all of Disney’s entire catalog for $10–that’s ludicrous. You paid $10 for access to it for a month. Just like you don’t buy all the equipment in a 24 Hour Fitness gym for $30. Are we also entitled to open the back door of the gym to let our friends in because we have a membership?
If you want to own (and lend out) your media, you have to buy Bluray discs. Subscriptions exist for people who don’t want to own and would just rather have access to a ton of content for dirt cheap.
 
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Why not a family plan that offers multiple households?

$15.99 for one household
$19.99 for two households
$22.99 for three
or something... up to some maximum.

You keep all of them under the same user/pass to discourage people using this discount beyond families and trusted friends.

Like a per-household additional charge that is still less than the other person getting their own subscription outright? Think of it like how people add a friend, partner, etc. to their phone plan since splitting the cost of a two-line plan is usually cheaper than a single user plan.

Streaming services used to explicitly charge for "more screens" - I'm sure this is part of why people felt sharing was OK, because to them they were paying more to allow someone else to use their account.

All in all though, this is the consequence of every single media company deciding they need to do their own streaming service. Netflix will tell you - running the infrastructure to support streaming is expensive. It would have made so much more sense in the long term if companies just let a handful of providers handle the streaming stuff and license their content, like with cable TV. It would have been better for consumers too. Easy to budget, consistent experience, no "which app do I open to watch ___", no "We can't carry ___ anymore, go pay an extra $15 to subscribe to ___ to see it", and so on. Instead, media companies saw what Netflix did, saw their success, and stupidly believed "let's just tell Netflix to screw off and start our own service!" Not realizing that Netflix's success (and the success of ANY media platform like this) was content - specifically the wide variety of content from many different sources. Imagine if you had to sign up for "Disney Cable" just to watch Disney, then you also needed to sign up for "CBS Cable", "Paramount Cable", etc. each with its own cable box, TV interface, etc. Cable would never have worked. Too bad the executives were so focused on potential short-term gains and not on long-term success...
 
Content companies should have stuck to licensing content out instead of running streaming services, and streaming services should have focused on buying content and running the best service possible instead of trying to make a ton of their own.

Now we have a ton of crap content spread across a ton of mediocre services with a little bit of good stuff sprinkled across each.

What a mess. Not just for users but for the companies too, clearly. They are all losing money trying to run streaming services, while with a little cooperation this could have been better for everyone.
Maybe so, but it might also be possible the streaming business model itself isn’t sustainable, not at the prices people are willing to pay.
 
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