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

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Anonymous 0 Comments

~~It might make more sense when you think about the other kinds of shows on Netflix.~~

~~Each time a show is watched, some amount of money is set aside to be given to the IP owner of the show. So if there’s an ABC-owned show on Netflix, every time someone watches it, a little bit of money goes to ABC.~~

~~But if it’s a Netflix original, they don’t have to pay out to anyone else and Netflix gets to keep a larger portion of the user subscription fees.~~

edit: Possibly very wrong. I read this in an engadget article a while back and can’t find the source article.

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