Movies that are released in theaters can profit by ticked sold, merchandising and ad revenue but what about streaming sites originals, those only available in digital form and exclusively in their platforms?
In: Economics
Streaming Services sell subscriptions and offer product placements in their productions, sometimes even more shameless than Hollywood movies do. You are paying for “the cinema ticket” one month at the time. Their metric is somewhat simple. They invest in productions and people don’t leave the service, and hopefully even more join in. At the end of the year they compare the cost of all productions and other investments for that year, against their revenue. If they meet their protected target, financially, that means they are making good decisions and keep doing the same thing onwards. If they underperform they adapt their business plan accordingly and hope for a better next year.
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