Disney Is Purging Content to Avoid Paying Workers and Evade Taxes
Disney is removing original content from its streaming platforms to cut spending on residual payments to writers and actors. The company is also claiming the purge will result in $1.5 billion in losses — which could amount to a substantial tax break.
Disney’s streaming platforms, Disney+ and Hulu, are purging content from their libraries. (Gabby Jones / Bloomberg via Getty Images)
As Hollywood actors and writers strike together for the first time since 1960 over pay, working conditions, and job security, Disney has purged dozens of original TV shows and movies from its streaming platforms, in a move that hurts workers and gives subscribers fewer options to watch.
Disney claims it needs to destroy the content to cut costs on platforms that aren’t making money, but experts say the company is overstating the value of its content — which could ultimately help the company pocket a higher tax break.
In May, Disney told regulators that it will incur $1.5 billion in losses as part of its content purge. Disney’s chief financial officer, Christine McCarthy, told investors Disney was making “excellent progress on our cost-cutting initiatives,” on its May earnings call, including “removing certain content from our streaming platforms.”
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