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A Netflix subscription buys actors, directors, writers, editors, cameras, microphones, lights, clipboards, trucks, sound stages, hair & makeup, trailers, set de
by closeparen 5y ago
A Netflix subscription buys actors, directors, writers, editors, cameras, microphones, lights, clipboards, trucks, sound stages, hair & makeup, trailers, set decoration, tape, clapper boards, generators, radios, VFX render hours, insurance premiums, producers’ risk, and all the other accoutrements of film and TV production.
There’s a lot of accounting and financial engineering and temporal shifting going on under the hood but ultimately you are paying for real things.
- cortesoft 5y agoRight, but I was talking about the MARGINAL cost per subscriber... those costs you mentioned are fixed costs, and they are the same whether Netflix has one subscriber or a billion. The marginal cost per additional subscriber is basically bandwidth, which is pennies.
- closeparen 5y agoThe system incurs those fixed costs based on how it anticipates they will pay off. With more money chasing content, the system will find it profitable to green-light more scripts at higher production values. But ultimately everybody’s favorite sound mixer has only two ears.
- midasuni 5y agoYou can see this in football. In the U.K. satelite TV massively increased the market - no longer were people spending £30 a game to watch at a stadium with a capacity of 30k, they were spending £10 a game to watch on tv with a capacity of millions. This extra cash poured into the salaries of the footballers in the top division, salary’s doubling every 4 or so years for a sustained period. The money didn’t trickle down to lower divisions or youth training or on site staff.