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And until recently, Netflix has been borrowing billions - more than its net income to produce and acquire content. Netflix pays once for content and it owns it
by scarface74 4y ago
And until recently, Netflix has been borrowing billions - more than its net income to produce and acquire content.
Netflix pays once for content and it owns it. It’s a fixed cost. YouTube content creator costs scales with popularity
- nl 4y agoBut Youtube controls how much they pay creators to a much greater extent than Netflix does. Netflix commissions shows, and they have to have hits to drive subscriptions. Youtube pays a percentage of the ads shown on each channel, which scales directly with the popularity. As the channel becomes more popular the creator gets paid more, but Google makes more money because the advertisers pay by views too. Netflix doesn't have that property.