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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There are often different business divisions who need to account for spending and income, even if it’s within the organization, as a means to assess performance.
Also, TV shows often have complex ownerships, with the production companies/producers owning a part or having contract stipulating royalties for shows being sold. So while Warner Bros. owns HBO, Bright/Kauffman/Crane Productions also has a stake and doesn’t care who the show is sold to.
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