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    Thanqol's Avatar

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    Apr 2009

    Default Re: My Little Pony VII: The Grand Galloping Thread

    Quote Originally Posted by EsperDerek View Post
    My initial guess would be that they give themselves the advertising, but there's a 'but':

    As The Hub is half-owned by Discovery, and they (Discovery) are actually the ones in charge of ad sales, it's entirely possible that money has changed hands for this sort of thing.

    Well, yes, it would be the right hand giving cash to the left hand, but weirder things have happened.
    *Business major time!*

    Money should change hands. Internal transfers of funds in business are very, very dangerous things. If Hasbro just adds all the money it gets to The Money Pile and doesn't let individual businesses have their own accounts and records, then it's impossible to tell which business sectors are failing and which are succeeding.

    So YES, if Hasbro needs advertising space from the Hub, it *should* pay market rates for Hub advertising space from it's own marketing budget. That way, no one high up in Hasbro looks at some numbers and says, "Wait a minute, we're not selling any advertising time on the Hub - we may as well scrap the entire station."

    When you're a vertically integrated company, each integrated business is a different industry. Care has to be taken to make sure Hasbro doesn't blur the lines between the TV industry and the toy manufacturing industry because these things have very different environments.

    EDIT: It's not the right hand giving money to the left, it's providing a way to determine if we should cut off the deadbeat left hand who just gets by on the strength of the right.
    Last edited by Thanqol; 2011-05-18 at 10:06 PM.