Based on what? Expansion here isn’t comparable to something like a restaurant or retail store where they’re buying up real assets. These companies are dumping billions of dollars to create new content that could be entirely worthless and canceled after a season or two and even when they’ve ‘expanded’, they’re still on the hook to create more and more content for fear of becoming stale and irrelevant. At what point do they just decide to stop investing in the service because “now it’s time to profit?”
Disney still has to pay to stream their own content as they have to pay residuals and the like. This is why HBO licensed out a bunch of their in-house content (like Westworld) to other services because it was more advantageous than streaming it on their own service.
The other services would be making profit if they weren’t in the “growth at all costs” phase. Every dollar they make gets reinvested.
You think disneys back catalogue alone, which cost them nothing to stream to people, isn’t enough for them to make profit?
Based on what? Expansion here isn’t comparable to something like a restaurant or retail store where they’re buying up real assets. These companies are dumping billions of dollars to create new content that could be entirely worthless and canceled after a season or two and even when they’ve ‘expanded’, they’re still on the hook to create more and more content for fear of becoming stale and irrelevant. At what point do they just decide to stop investing in the service because “now it’s time to profit?”
Disney still has to pay to stream their own content as they have to pay residuals and the like. This is why HBO licensed out a bunch of their in-house content (like Westworld) to other services because it was more advantageous than streaming it on their own service.