For example, just announced is “The Gray Man” which Netflix is producing for $200M. Since the vast majority of the people who will watch it already have Netflix subscriptions how does Netflix actually make profit off this movie?
It’s not like it will encourage someone who’s subscription expires months after to hang on because of that one movie so where is the gain?
In: Economics
people who can afford it will not care about paying monthly but they will look at the value. so if a month did not have any good originals, they wont cancel and resubscribe when there’s a good original. theyll just leave subbed forever because they dont feel like they’re overpaying. netflix actually pioneered this model because they let people binge entire series all at once. before they did this, nobody knew for sure if it was gonna work.
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