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Why are Disney, Max, and Netflix eliminating shows they own?
When we think of streaming companies like Disney or Max, think of them as owning a car, which would be the show in this analogy. Owning the car does not make it free to drive because you must pay for gasoline. The gasoline would be royalties and other contractual obligations.
While Disney and Max may own the shows, they have different agreements with different writers and /or production companies involved in the making of the shows.
Another reason could be music royalties for the music used in the show or movie. Some shows even change the music in the episodes that are available for streaming, for example, Scrubs or Quantum Leap.
Disney and Max do not want to pay royalties for shows that are not being watched very often.
In addition, some of these companies can get more money by licensing the shows than for streaming it on their own platform.
Streaming is not particularly viable or profitable as a business model. All of these companies are building their models based on what Netflix does. The space has become very competitive and crowded with all the different streaming services cannibalizing each other.
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