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Technology Stocks : Netflix (NFLX) and the Streaming Wars
NFLX 1,1200.0%11:45 AM EST
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From: JakeStraw8/15/2018 4:13:05 PM
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Netflix tries a different model for TV shows, paying more up front but keeping more later on big hits, insiders say
Netflix buys shows at a rate of the cost of production plus about 30 percent of production costs, but it retains most of its future licensing rights.
This is different from how networks typically license shows, which often only covers 60 to 70 percent of production. However the production company retains the majority of the rights, giving them the opportunity to make money in the future if the show is a hit.
Still, many people are lured by Netflix because the company has treated its producers well and lets them make the show they want without interference.
cnbc.com
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