Description

Why Studios Cancel Profitable Shows

Why do Netflix and streamers cancel shows after 2-3 seasons even when audiences love them? The public narrative is always "creative direction" or "viewership." The business reality is different.

In this episode:

• How shows can be profitable for producers but unprofitable for platforms
• The economics of license fees, backend obligations, and escalating talent costs
• Why cancellation decisions are made by finance, not creative
• How launching new IP is cheaper than paying escalating costs
• The shift from audience-building to cost management in streaming

Key takeaway: "Cancellation decisions are made by finance, not creative. It's cheaper to launch new IP than pay escalating talent costs."

Related topics: streaming content strategy, TV production economics, talent deals, show renewal decisions, entertainment finance

The Option is a daily intelligence briefing on the business of Hollywood. Subscribe for entertainment industry news, streaming analysis, and content business insights. New episodes every weekday at 6 AM PT.