Netflix new business model

Keep in mind Netflix doesn't need every person to watch all their programming. All they have to do is produce enough diverse content to retain their subscriber base. For example, let's say you like superhero-type shows. All they have to do is produce four or five shows, 40-50 hours of original programming a year, and that will probably be enough to keep you subscribing. Somebody else will be content with 50 hours of romance, someone else with 50 hours of documentaries. A thousand hour war chest is enough to persuade millions that Netflix is a must-subscribe item for commercial free content they can't get anywhere else. 

Compare that to tv where every show needs to gather an audience large enough for advertisers ...

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