HBO is a pure example of this. A $10 million investment from HBO for a licensing agreement which considering the deal with Foxtel would indicate it is a one-way street in HBO's favour.
It would be interesting to understand what the deal is, and especially what the agreements are in relation to the Commitments disclosed at page 48 of the annual report.
How is the $12.4 million of content studio fees over the next 5 years broken down between each of the studios, especially how much of this is in relation to HBO? In other words QFX may have received $10 million in cash from HBO, but how much is it committing to spend on programming over the next 5 years and at what margin over what would have been negotiated in an arm's length transaction.
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