this post was submitted on 08 Feb 2024
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Their greed backfired and they lost money as a result. Music to my ears. Arrr.
Unfortunately, no. They were already losing lots of money. They are now losing less money than they were before even after people left. Which is generally what happens if you're losing money for every subscriber and then subscribers leave.
How do you lose money per subscriber? Surely the subscription fee each subscriber pays is enough to offset the server, labor, etc costs, right?
By making up more costs.
More seriously, by evaluating what you could be making by letting someone else run the streaming service and pay you for the rights, instead. It's still a pretty imaginary number, but it does come from something real.
Also, for a business other than Disney, licensing fees for the content they show can be a pretty large cost that needs a lot of subscribers to offset.