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« Disney and Netflix
This is a sub-selection from Almost there

anon anon

reply to espaeth

Re: Almost there

said by espaeth:

said by Jim Kirk:

Prove it.

Netflix has 30 million subscribers, this new venture will cost $350m/year, or about $30m/mo. That's about $1/mo per subscriber in additional expense.

Netflix net profit margin is < 10%, so on an $8/mo streaming account they have less than $0.80 in profit margin.

Unless they raise prices, Netflix will be losing money to offer this content.

Profit margin chart for reference:

You're not taking into the account increased subscriber base because of this deal.