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tanzam75

join:2012-07-19
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.

biochemistry
Premium
join:2003-05-09
92361
This is why Netflix is producing more of their own programming.