RE:RE:Will inflation against or benefit WILD?Andrew1111 wrote: It'll get more expensive to make new shows, but I don't think it'll impact much either way. The shows are already heavily subsidized due to Canadian tax credits, thats the only thing that'll make any real impact to the production side. And they aren't going anywhere, if anything, they'll continue to strengthen.
According to Q2 MD&A: "
As the market for content continues to evolve and competition for viewers intensifies, major SVODs, such as Apple, Amazon Prime, Hulu, Netflix and HBO Max, are investing heavily to deliver high-quality, exclusive programming. Under this model, typically the SVODs pay for the cost of production inclusive of production fees, while we retain ownership of the underlying IP as well as linear distribution rights (after a holdback of approximately 24 to 36 months) and all consumer products revenues. This differs from the traditional production/distribution model of covering production costs from multiple linear broadcasters, with margins realized over multi-year licensing cycles." Looks like SVOD covers most of the cost. So if inflation actually happens we still can raise prices.
Btw, our content library got a huge boost from inflation too. It will take more $ to replicate the same library content/IP => we will get a lift for free for those assets. We can rent them out at more $ and don't have to do anything. It works the same way as real estate, don't you agree?
We also benefit because we have a lot of debt on our BS. Our debt value will go down, our assets value will go up => huge winnn