|reply to silbaco |
Re: Why should TV providers fight content owners anymore?
They're already slamming Netflix hard enough that it barely eked out a 3% net profit last quarter. And that's actually up from 0.3% in the previous quarter.
When subscriber growth gets ahead of the licensing fees, Netflix can make a profit for a short period of time. However, this doesn't last, because Netflix has to pay a higher fee at the next license renewal negotiation.
It's the same treadmill -- just starting out from a lower number. Eventually the number will go up.