This is something I’ve heard about a few times now as a sort of controversy about popular or highly anticipated shows being pulled from streaming, sometimes due to the tax benefits that this grants companies. I think it only applies to original programs by that platform but I could be wrong.
What is the purpose of this and can someone please ELI5?
This article mentions some recent cases but it doesn’t say why or how this leads to a huge tax break: https://comicbook.com/movies/news/warner-bros-discovery-tax-write-down-recent-content-cancellations-tnt-tbs-dc/
In: 8
Because they lost money on the production. A majority of the canceled projects never made it to the screen, but they incurred costs in their production and development. Some that did make it to the screen didn’t do well at all. It would take too long for them to be profitable (if ever) to leave them up. It’s financially better to cancel it and take the earnings hit to get a little of that money back via a reduction of taxable income.
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