The Economics of Netflix’s $100 Million New Show

With Netflix’s foray into original, high quality programming today, the streaming TV network wants to turn into the HBO of Internet TV, but can the network afford it? Putting together a big production with famous actors like House of Cards costs a lot of money—$ 100 million for two 13 episode seasons, to be exact—and Netflix CEO Reid Hastings says he plans on making five new shows like that per year, he told GQ’s Nancy Hass. How can that make economic sense for a company makes all of its money off $ 7. …

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