The residual benefits of a hit series that Netflix produces is really where the value is. With a hit series that they own: 1) Subscribers know that the series

The residual benefits of a hit series that Netflix produces is really where the value is. With a hit series that they own: 1) Subscribers know that the series will never go way. 2) Once a season is the bag, the return on the season is really high going forward as there is no cost to show the episodes (ie. no content fees) All this means that Netflix will continue to fund new series and find ways to bring the cost down. The future returns on a series is just to big to ignore for them to not do it.