Part 6/12:
Overruns and the Changing Economics of Hollywood
Historically, Disney and other studios could rely on lucrative licensing deals, physical media sales, and streaming residuals to recoup high production costs. However, in today’s market, these revenue streams have dried up or become less reliable. Physical sales have plummeted, and Disney+, which cost the company over $13 billion and is yet to turn a profit, is primarily consuming content rather than generating significant income.