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Isn't the content and licensing costs are the majority of their costs? Honestly asking, I never assumed infrastructure and bandwidth might be the majority
by snird 3y ago
Isn't the content and licensing costs are the majority of their costs? Honestly asking, I never assumed infrastructure and bandwidth might be the majority
- joshspankit 3y agoIt depends on the service. For Disney and Paramount+ they already own the IP and the costs then would be storage + bandwidth + metadata/transcoding servers + engineer time. Of those, the bulk would be bandwidth. Similar for content that’s owned by the platform. Netflix, Apple, and others invested in to original programming and in those cases there’s again no need to license.
- soco 3y agoHowever the prices of all those are similar. By this interpretation, either Disney does a very bad and expensive engineering job, or Netflix is losing big money. And I don't think either is the case... so there must be something else (and I can't tell what).
- joshspankit 3y agoIn this case you can’t look at prices as an indicator of profitability. Pricing is all marketing right now, and only barely connected to real business numbers.