this post was submitted on 10 Jan 2024
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[–] triclops6@lemmy.ca 2 points 10 months ago

Ooh so it's both

Kevon is right, one tax benefit is the cost of the show: whether they cancel it or not they get to write off those expenses, and they get a tax break there

Chris would be correct too though: if Netflix holds the IP as assets on the balance sheet, they'd be held at some present value of expected royalties. When they cancel the show id imagine that asset value takes a shit, that's a write off, so tax benefit there

That said no business does this to make money from the tax asset, you have to lose more than the government gives you back

More likely Netflix is high off it's own farts and thinks just money can make cinema magic and it clearly can't.