Stock market aside, it is yet to be seen if Netflix model is viable on long term. Current content budget growth is larger than revenue growth and lot of the new

Stock market aside, it is yet to be seen if Netflix model is viable on long term. Current content budget growth is larger than revenue growth and lot of the new memberships are coming from International market which will saturate at some point. The basic hypothesis here is that $10/mo per subscriber would be enough to sustain roughly $700 million/mo content budget. This is quite possible if you had 70 million subscribers. HBO on the other hand 130 million subscribers but they do this by sneaking in package deals with cable plans. However there is no magic here with idea or business plan. You can think of whole deal as Netflix turning itself in to Internet version of HBO. It will just work as good or as bad.