How does streaming sites like Netflix profit with their original shows?

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Movies that are released in theaters can profit by ticked sold, merchandising and ad revenue but what about streaming sites originals, those only available in digital form and exclusively in their platforms?

In: Economics

14 Answers

Anonymous 0 Comments

So as mentioned before they get money from subscribers. They also used investor money to pay for creating the shows as it will give them a unique catalogue that brings in new subscribers and hold current ones. One advantage of having their own shows is it‘s mostly a one time investment, after the costs of creating it, the show will remain part of their catalogue without any costs, for their other shows they pay licensing fees for as long as they are offering it, making it less profitable over time

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