3 ms·
No - as a general rule, Netflix pays a fixed royalty for the content that they license from third parties, regardless of how many people watch it. This is why t
by sib 10y ago
No - as a general rule, Netflix pays a fixed royalty for the content that they license from third parties, regardless of how many people watch it. This is why the quality of their predictive models is so important; the better they can forecast, the better they can determine whether the price they would have to pay is worth it.
(Of course, the royalty is different for every piece of content, but the amount is negotiated ahead of time; it is not on a per-usage basis.)
This is different from iTunes movies, Amazon (non-Prime) Video, Vudu, Google Play, etc., which license on a revenue share basis.