Netflix is learning the math changes when you pay to produce your goods. How many bands is Spotify signing with investment capital?
Netflix is rapidly finding that exclusive original programming is the solution to some of its subscriber problems. We are kind of enjoying watching these “cutting edge” Silicon Valley “innovators” come to conclusions that are circa 1950 for our business, but glad that they are figuring these things out gradually. Yes, Mr. Hastings, that’s called a “network.”
But in the Golden Age of Internet, that also means those who pay for the programming also support those who sell advertising to ad publishers who distribute illegal copies of that programming. When both those who produce the programming and those who sell advertising are Silicon Valley tech companies, that’s an interesting problem of economic interdependence.
Keven Spacey is the star of one of Mr. Hastings most successful programs, House of Cards. I would bet that Mr. Spacey has a nice piece of the back end on that show, which makes him Mr…
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