
“HBO Max is trying to also save on residuals,” LMU’s David Offenberg, associate professor of entertainment finance, explained on NPR’s Planet Money about changing streaming strategies. “One thing I can tell you about residuals is that they are more expensive in earlier years of the show’s life and less expensive in later years, and so there is something of a heightened incentive to cancel a show and take it off the platform early in its life because that is when the residuals are more expensive.” (13:35 mark)
Source: NPR
Planet Money: Why Platforms Like HBO Max Are Removing Streaming TV Shows