The Economics of Netflix and HBO

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A new infographic from GreatBusinessSchools.org compares the economics of Netflix and HBO--two subscriber-based models that operate very differently to create their buzzy original shows.

For example, the infographic shows that in order for Netflix to pay for two shows, 1 out of every 600 Americans needs to subscribe for two years, while HBO has more access to funds because of parent company Time Warner. As the infographic explains, "Netflix is making a gamble in an attempt to beat out long term quality content leader HBO. Netflix is expanding faster subscriber- and revenue-wise. But they don't have any money--they're spending it on expansion."

See the infographic here at Lost Remote.

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