09 Jul Streaming TV or Movie? Why It Matters to Amazon’s Profits [WSJ]
By Michael Rapoport
July 8, 2018 | Is it a TV show or a really long movie? In the streaming, binge-watching era, the line between the two has gotten blurry—and that could eventually help nudge earnings upward at companies like Amazon.com Inc. and 21st Century Fox Inc. Accounting rule makers have tentatively agreed that companies should account for their costs of producing TV shows in the same way that movie production costs are already handled. Right now, TV producers have to immediately expense many of those costs, cutting into profits; moviemakers can bleed them into results over time.
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