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Netflix and HBO Produce Some of the Most Social Shows, but How Do They Fund Them?

netflix-logoFrom ‘House of Cards’ and ‘Orange is the New Black’ to ‘Game of Thrones’ and ‘True Detective,’ Netflix and HBO are home to some of the most social shows on TV.

Netflix and HBO have very different business models that allow them to fund the original programming that has come to define them, and a recent infographic produced by Great Business Schools highlights these differences.

Some highlights from Great Business Schools’ research, followed by the infographic:

- To pay for one show, 520,834 people need to subscribe to Netflix  for two years, or, 1/600 of all Americans. For five shows, 2.6 million new subscribers are needed, or, 1/115 of all Americans

- Cost per episode:
Hemlock Grove: $4 million
Orange is the New Black: $4 million
House of Cards: $4.5 million before David Fincher (executive producer)

- HBO spends $1 billion a year on original content.
But Time Warner owns them…
So there’s lots of cash on hand.

Netflix is continuing to grow,
but they’re having to borrow through bonds to keep expanding.

EconomicsNetflix

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