Quote:
Originally Posted by muppetman11
Netflix will continue with its original productions were it can show them in all its markets , paying silly amounts for the first run movie rights in the UK just doesn't stack up until it's user base grows considerably larger here in my opinion.
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Sometimes you sustain a loss by spending more to attract new customers. Look at Sky with their Sky Atlantic channel. A huge loss leader if ever I saw one. Tiny audience, expensive and exclusive first run shows.
I agree with your basic premise, MM, that Netflix's income is not enough to cover the expense of first run material, but this is exactly what attracts new custom. If it wants to grow big quickly, this is the way to do it. I think their pockets are large enough to withstand it.