Quote:
Originally Posted by getbak
Netflix pays $1.3B per quarter to licence content, but they only generate $1.2B per quarter in revenue?
That doesn't seem like a recipe for success.
|
There are actually a variety of numbers available.
IIRC, the $1.3B per quarter came from BI, but Techcruch reports this as of last year.
Quote:
|
- More notably, they’re spending $2 billion per year on content licensing and original shows. The “vast majority” of this spending goes to licensing movies and prior-season TV shows, with a much smaller chunk of it going to their recent original content efforts.
|
http://techcrunch.com/2013/04/24/net...-and-tv-shows/
Not so terrible after all. Obviously still a concern, especially with the prices continuing to rise, but manageable.
Plus, they actually turn a profit so it is not like they are losing money. Similar to Amazon, who turns a small profit, and sticks a lot of money back into the company to make it better.
Netflix is all about growth right now.