Gene Maddaus Senior Media WriterFor 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.In 2017, Bill Nye, star of “Bill Nye the Science Guy,” challenged that practice, calling it yet another example of Hollywood accounting.In a lawsuit in Los Angeles Superior Court, Nye argued that the actual distribution costs for platforms like Netflix and Amazon Prime are minimal, and that Disney is essentially raking.
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