this post was submitted on 10 Jan 2024
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I'm pretty sure it's for tax deductions as it's a loss if they cancel it. The cost to host the show would be completely negotiable as people would just watch something else.
It's not an extra write off just because it doesn't make money. The tax effect is the same as a successful show.
I'm pretty sure that's not the case and that they can't write it off as a loss unless they cancel it. I've specifically read about that happening with HBO, Disney and Netflix.
To chalk it up to stupidity when it's a reoccurring thing among big businesses is stupidity; they're doing it for a reason and typically that reason is money.
Ooh so it's both
Kevon is right, one tax benefit is the cost of the show: whether they cancel it or not they get to write off those expenses, and they get a tax break there
Chris would be correct too though: if Netflix holds the IP as assets on the balance sheet, they'd be held at some present value of expected royalties. When they cancel the show id imagine that asset value takes a shit, that's a write off, so tax benefit there
That said no business does this to make money from the tax asset, you have to lose more than the government gives you back
More likely Netflix is high off it's own farts and thinks just money can make cinema magic and it clearly can't.