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Disney Keeps 80% of Streaming Revenue By Calling It Home Video
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For years, Disney has been keeping 80% of the revenue from older shows that it distributes to streaming platforms, leaving only 20% to be available to stars and other profit participants.
It does so by classifying the revenue as “home video.” Under a formula dating from the introduction of the VCR, Disney subtracts an 80% royalty to its in-house distributor to cover the costs of distribution.
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In 2017, Bill Nye, star of “Bill Nye the Science Guy,” challenged that practice, calling it yet another example of Hollywood accounting.