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No you don't. You don't normally include opportunity cost on your balance sheet.
by rcme 4y ago
No you don't. You don't normally include opportunity cost on your balance sheet.
- nebolo 4y agoNot to be pedantic (ok a little bit), but you don't normally include any costs on your balance sheet, but you might want to include them on your income statement.
- itake 4y agoyes and no. The problem is if last year they earned $1m from it by it being on Netflix. Moving it to their own streaming platform will look like a $1m less revenue.
- madeofpalk 4y agoDepending on how org and financials are structured Disney+ may need to purchase Daredevil from the other part of Disney for $1m, which is recognising that opportunity cost.
- ChildOfChaos 4y agoYou don't, however Disney was making this money before as they were directly licensing it to these services, so it's not just opportunity cost, but actual lost revenue when compared to previous years.
- majormajor 4y agoThese deals can be complex. Consider if you were going to make a movie, and were shopping it around to studios. If Studio A was like "we'll give you a 10% cut of whatever we then license it for for streaming" and Disney was like "we're gonna stream it on our own platform for free, sorry" that's a negotiation problem for Disney. So selling internally at market rate is a good thing for relationships with external creators and partners.
- rcme 4y agoIt seems like it’d be infinitely more fair to say “should we stream it in house, here is how royalties will be calculated.”