How does Netflix Make Money?

new on netflix february 2015

With as many people who use their friend’s logins for Netflix, we were surprised there were a lot of people randomly surveyed who didn’t know how Netflix actually makes money. One question we often also get is how does Netflix make money on House of Cards and Orange is the New Black, alongside their other original content.

First, Netflix makes money by charging a monthly subscription fee. This fee varies depending on the type of subscription signed up for, alongside region where the account will be located (it’s not a big difference, but with exchange rates, Netflix costs vary a bit depending on where you are located).

As far as how Netflix makes money on its original shows like House of Cards, Orange is the new Black, and others is a bit less obvious. But think about Netflix originals as a sort of marketing material for the Netflix service itself. You might not have Netflix, so you show up to work to hear your coworkers talking about House of Cards only to want to be a part of the conversation. With that in mind, you go home and sign up for a Netflix account and quickly become a loyal subscriber. That’s probably the most common ways Netflix makes money off of their shows.

Let us know if you need any clarification in the comments below.

Comments

  1. Andrew Curry says

    If you look at the economics of buying rights to stream TV shows you have more and more companies in the mix trying to outbid each other.

    So Netflix could pay a lot of money for an exclusive deal, or it could pay a little bit more to make its own content.

    This content transforms Netflix from a glorified online DVD library to a provider of stuff which keeps people interested in the service itself.

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