First of all, every single article talks about 70% of revenue (not of the net income)
Revenue: 11,727
Fees to rights holders: 1,665
So yeah, that's more than 3B annualized
And some nice crappy disclaimer to further obfuscate their practices:
Auditing cost of revenue and rights holder liabilities was complex due to the number of royalty calculation variables in addition to complex IT systems and a significant volume of data. There was significant auditor judgment related to circumstances where rights holders have allowed the use of their content while negotiations of the terms and conditions or determination of statutory rates are ongoing.
> First of all, every single article talks about 70% of revenue (not of the net income)
Yes. Because payments to right holders are based on revenue. That is what literally all of streaming services do.
> revenue: 11,727 / Fees to rights holders 201,665
Fees to rights holders are not the entirety of payments to rights holders
> See my list of costs of revenue
Where?
> And some nice crappy disclaimer to further obfuscate their practices:
Tell me you have no idea what you're talking about without telling me that. I worked on the system handling contracts and royalty calculations for a much smaller company (Storytel).
Royalty calculations and payouts are insane.
> There was significant auditor judgment related to circumstances where rights holders have allowed the use of their content while negotiations of the terms and conditions or determination of statutory rates are ongoing.
That is
a) a very common thing
b) one of the many, many things that complicate royalty calculations and payouts