Disney is removing original content from its streaming platforms to cut spending on residual payments to writers and actors. The company is also claiming the purge will result in $1.5 billion in losses — which could amount to a substantial tax break.
"Disney claims it needs to destroy the content to cut costs on platforms that aren’t making money, but experts say the company is overstating the value of its content — which could ultimately help the company pocket a higher tax break.
In May, Disney told regulators that it will incur $1.5 billion in losses as part of its content purge. Disney’s chief financial officer, Christine McCarthy, told investors Disney was making “excellent progress on our cost-cutting initiatives,” on its May earnings call, including “removing certain content from our streaming platforms.”
How can it be both?
They are portraying it as a loss in assets, while the other is a gain in revenue.
It’s still bullshit to portray it as an asset loss because it is not destroyed, but that appears to be what they are saying.