said by espaeth:
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.