> The Dow giant still expects Disney+ to be profitable in 2024.
Disney+ isn’t profitable once you take into account “transfer payments”. They may not be profitable at all yet. But they specifically mentioned being profitable including transfer payments.
That basically means that when Disney movie studios use to sell streaming rights to another company - say Netflix. They may make for instance $500 million (made up number). Disney+ still “pays” the Disney movie studio $500 million. It’s counted against Disney+ profits. Of course the Disney company as a whole keeps most of that money. But it still has to pay part of it to the actors, producers, etc who have a revenue share agreement.
It was a big point of contention when Black Widow was released.
Why should the Disney+ manager get credit for making $450 million in profit by causing Disney Movie Studios to lose $500 million? How is that good for the overall business? Again I’m completely making up numbers.
We had a method to pay one bill and get all of the content you wanted - it was called “cable”.