I think that a show like Westworld is a great example of the realities of the streaming era. If HBO kept streaming it on HBO Max it probably costs them $2-4 million in residual liabilities. HBO removed dozens of scripted shows during that phase, and had a mandate to cut around $3B in post merger costs.
After Year 1, WGA/SAG residual formulas decrease:
Year 2: ~80% of Year 1
Year 3: ~55%
Year 4+: sometimes stabilize at a “floor” rate
So what did they do? They ran it for a few years, ran the numbers, realized that Westworld was no longer profitable on the platform. (Profitable would have to mean draws enough new subscribers to the platform). AND THEN - Warner Bros. Discovery made new deals with other platforms with ads. I think you can still find Westworld on Tubi and other ad-supported platforms that actually pay Warner licensing fees.
After Year 1, WGA/SAG residual formulas decrease: Year 2: ~80% of Year 1 Year 3: ~55% Year 4+: sometimes stabilize at a “floor” rate
So what did they do? They ran it for a few years, ran the numbers, realized that Westworld was no longer profitable on the platform. (Profitable would have to mean draws enough new subscribers to the platform). AND THEN - Warner Bros. Discovery made new deals with other platforms with ads. I think you can still find Westworld on Tubi and other ad-supported platforms that actually pay Warner licensing fees.