Have you any examples of this happening? Because every experience I've seen points to sweetheart deals (such as android + spotify) but internal teams have to play by the normal rules.
>Individuals pay $10 a month for the AI assistant. In the first few months of this year, the company [Microsoft] was losing on average more than $20 a month per user, according to a person familiar with the figures, who said some users were costing the company as much as $80 a month.
Who knows if Apple is earning a profit on its Music + Classical Music apps or whatever else it bundles into its products. Maybe they consider it to be a small enough loss to offset the chance that a customer buys an Apple One bundle, which then makes up for the loss because the margins on cloud storage are much higher.
For physical products, which makes sense. I can’t imagine Apple TV+ was (or probably still is) at all profitable (especially considering how low the monthly fee was and all the promotions at the beginning).
Theres a big difference between allowing a project to run at a loss over the short term (the article says first few months of this year), and using a different business vertical to allow an unprofitable venture to proceed.
https://www.protocol.com/amp/amazon-bad-at-games-2646952917
Neither is Disney ignoring transfer cost between Disney Studios and Disney+.
Management accounting takes into account opportunity costs.