It’s like how Peacock paid NBCUniversal $500M for The Office, even though Peacock is owned by NBCUniversal. Or how HBO Max paid Warner Bros $425M for Friends, even though HBO Max is owned by Warner Bros.
If a studio owns a streaming service, how exactly is that streaming service paying that studio for the content? Is the studio just paying itself? How exactly does that work and why do they have to do it?
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It’s actually a legal requirement due to Anti-trust/Competition Law.
Both from a perspective of you can’t so grossly favor a member of your group and charge them zero or next to nothing while charging an outsider full price – that would be abuse of your market position.
And also from a tax perspective – you can’t simply make losses and shift profits between separate tax entities which are part of the same group to be tax advantageous.
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