Details, Details – Mr. Hedge
I planned to be finished talking about a certain almost TV network, then noticed that some readers wanted to know details behind the almost-TV network’s shady accounting.
So here you go.
The almost-TV network takes 4 years to depreciate 90% of the production cost of their original content. This is not a tightly-kept secret.
Their top executives will answer the question, if an investor bothers to ask them – or digs through many long, boring financial filings.
Think about how a newly released box-office film gets depreciated, which is about that quickly – at the end of the box-office and peak on-demand runs.
That always happens within a few months for a typical film, for a massive blockbuster – a year at most.
Sure, the almost-TV network does have their films available for streaming, so the loss of value doesn’t happen quite as quickly, as it would for a movie theater film.
But it doesn’t take 4 years either.
Not even close.
Is watching a 3 year old film worth the same to a subscriber as a 3 month old film?
Of course not.
Think about that big recently released sci-fi film which cost them $100 million.
The one critics hate, and most people think is a lousy film.
This applies to the almost-TV network’s entire film program, which represents the majority of their content spending.
That is how the almost-TV network can burn through mountains of cash, yet claim they are reporting a profit to their investors.
The almost-TV network told investors back in January that they could throttle back on the record $3-4 billion of cash they told everyone they would use in 2018.
As predicted, they are already changing their tune.
Just last week at an investor conference, the management admitted that 2018 might not be their “peak burn year” for cash.
Not surprising, considering all the big multi-year commitments the almost-TV network has been making lately.
The good news is that this almost-TV network is basically burning through $30-40 per year of cash, per U.S. subscriber.
This means they’re not charging subscribers anywhere what they need to charge, in order to cover all this spending.
So enjoy all the lousy, over-budget films, for as long as the almost-TV network can keep borrowing more money to finance them.
Their new film launching this week was set in a foreign country, with a completely improbable plot.
The studio was glad to offload this heap of garbage to anyone who would finance production – after their first 2 choices for both lead actor & director all bailed.
Initially a recently married, foreign-born, full frontal loving actor was set to play the lead.
Several years ago, a former girlfriend accused this actor of horrible physical abuse.
When he bailed, a foreign born A- list mostly movie actor was tapped.
Finally, they ended up with a disgusting B+ list actor who is an Academy Award winner/nominee, and is equally as famous for another entertainment profession.
This is the same guy one with a long list of underage teen hookups.
Big recently released sci-fi film: Mute
New film: The Outsider
Disgusting B+ list actor: Jared Leto
Foreign-born, full frontal loving actor: Michael Fassbender
Director: Daniel Espinosa
Foreign born A- list mostly movie actor: Tom Hardy
Director: Takashi Miike
Netflix’s new movie with Jared Leto, The Outsider, has been slammed by critics
The Outsider, Netflix’s Yakuza movie starring Jared Leto, seems to have missed the target based on its scathing first reviews.
Landing on Netflix today (March 9), the movie has already had to battle against accusations of whitewashing for having a white, American protagonist, even though the movie is set in Asia and is about the Yakuza.
But it seems that early backlash to the trailer was the least of its problems.
“It’s by no means impossible to carve a challenging, meaningful story out of difficult interchanges between the east and west. To return to Scorsese, consider Silence, a fine film about European men slowly realising just how little they understand of Japan. But neither Zandvliet, Baldwin, nor Leto care to look beyond themselves.”
“You probably don’t need a critic to tell you that The Outsider, a tragically real crime drama in which Jared Leto plays a silent but violent enforcer for the Yakuza in post-war Japan, is 100% horrendous. After all, when was the last time you saw a good Yakuza movie starring Jared Leto?”
“Dull, flavourless, and fundamentally incurious, The Outsider is a clueless misfire, the cinematic equivalent of a study-abroad student showing off the kanji forearm tattoo whose meaning he never bothered to learn.”- Source