An industry insider has clearly explained why Disney+ removed movies and shows from the streaming service. As HBO Max began a rapidly controversial trend following content cuts, Disney management announced more than 40 series and movies, including popular projects like Willow, will be removed from the platform on May 26. In general, the delisting is understood as Disney’s attempt to reduce costs and increase profits. But there is still confusion about how getting rid of the original shows will actually achieve those goals, and whether those shows might reappear elsewhere.
write more articles globe In the news, veteran entertainment reporter Matthew Belloni explains why Disney+ will remove much of its content. In the excerpt below, Belloni said the main reason behind the relocation was failure to pay the remaining amount. While this element is real, it is “A relatively small fraction of the cost of streaming shows and moviesThe main issue is the licensing fees that streaming services like Disney+ have to pay to the content owners, the production studio behind the shows. By eliminating shows, Disney saves money by not paying fees. Deletion was also discussed. The possibility that the content of the content may re-appear elsewhere:
The mechanics here are very interesting. First, it seems that many people believe that the remnants of the artist are the reason for the purge. Not really. The rest makes up a real but relatively small portion of the cost of streaming shows and movies. In fact, a fraction so small that the Writers Guild is on strike to improve them.
The main cost here is the licensing fee that the publisher (in this case Disney+ or Hulu) has to pay to the content owner. We can think of these shows like sitting in a service, waiting for you to be discovered by your stoned cousin at 3 a.m. But from a licensing standpoint, it’s one thing to sit on a streamer as if the show was syndicated on TBS or sold to foreign territories. Disney+ is an exhibition and there is a fee. This is true even if the content owner is also Disney (or an affiliated company) and Disney must at least pretend to be in business.
The way it works is that Disney employees go through the library, figure out what isn’t showing (trust me, some of it no one’s actually watching), take it out of service, and charge the loss. . The cost of an entertainment product is usually prepaid and amortized over time but when you write down an asset you can write down the cost today which means you are saying, it does not. worth the money we paid. If it’s a Disney+ show, like Lucasfilm’s Willow series or Encore! Yes, D+ won’t be burdened constantly. The downside is that once you incur the cost of the loss, you can no longer bring the asset back to Disney+. It was gone, at least for the entire duration of the waning.
But it is not a complete loss. When you damage an asset (like a TV show), you’re looking at the value you can get from other sources: electronic sales platforms (like Amazon or Apple TV purchases) , FAST channels (PlutoTV, Tubi), be it Netflix or Amazon, etc. If you find a buyer, you subtract the money you made there from the write-off, and the content stays somewhere. If not, it disappears.
What the removed titles mean for Disney+’s future
While some Disney+ movies were included in the list for removal, most of them were series that were canceled by the streaming service. Hulu also has some examples of canceled shows, such as the Kat Dennings comedy Child’s faceor in FX like Y: The Last ManBoth FX and Hulu are under the Disney umbrella, suggesting that canceled shows are most at risk of being pulled.
As for the removal, reports and speculation suggest that Disney+ may stop approving smaller family comedies and instead focus more on established franchises. But, as Belloni writes, on the plus side, deleted titles can eventually reappear. The same goes for some of the titles that HBO Max removed last year.
Some of the most notable deletions, such as western world It has since reappeared on free streaming services with ads like Tubi and Roku as part of a license agreement. On the other hand, love this life, with the star power of Anna Kendrick and William Jackson Harper, not to mention the lovely romantic comedy premise, which has yet to appear elsewhere. Overall, with more exits planned, Disney+’s path forward remains uncertain.
Source: Parker