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Disney Takes a $1.5 Billion Content Write-Off After Removing Shows From Their Platform

Art meets billions in commerce. We've covered the studios and streamers pulling movies and TV shows and wondering if we could put a price on it. Well, now we have some public records with the tax write-offs Disney is taking, thanks to removing this hard work done by writers and directors. There was an SEC filing on May 26, 2023, where Disney said it removed “certain produced content” from its streaming services and is taking a $1.5 billion impairment charge “to adjust the carrying value of these content assets to fair value.” That means they are writing off that "loss" even though it was self-inflicted. Removing all those shows and movies actually saved them that much on their corporate taxes. They took off more than 50 titles from streaming, and they're going to keep doing it. We can assume other studios are doing the same thing. Their mission is straightforward. On an earnings call, Bob Iger said that he was "confident that we’re on the right path for streaming’s long-term profitability,” and working on “rationalizing the volume of the content we make and what we’re spending.” Read More...

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Published By: NoFilmSchool - Tuesday, 6 June, 2023

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