Watch our latest video report on Disney’s cynical financial strategy, below:
@levernews Streaming services are pulling content to avoid paying workers — and could claim a tax break for doing so. Read the full story at LeverNews.com #LeverNews #news #disney #hollywood #bobiger #WGA #SAG #hollywoodstrike #fyp ♬ original sound - The Lever
Transcript:
The Walt Disney Company is making magic once again, by removing TV shows and movies from its streaming platforms and then claiming about $1.5 billion in losses and potential tax write offs.
Disney is essentially saying that it's removing content from its platforms because it's not worth the cost while simultaneously saying that the content it has removed amounts to about $1.5 billion in losses.
Now, if you're thinking that doesn't really sound like it makes sense or is fair, you're not the only one. As a business finance professor put it, if you take a show off because people are not watching it, you can't in good conscience turn around and claim a billion dollars or even $100 million, as you're taking it off because people are not watching it.
And just for additional context, over the last five years, Disney has made nearly $40 billion in profits, they've paid their CEO Bob Iger $499 million in compensation, all while paying a single digit corporate income tax rate. And that's Disney magic.
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