|Netflix Ups Spending on Content, Lowers Spending on Streams|
|Home Theater News What Is On In HD News|
|Written by Dick Ward|
|Monday, 21 March 2011|
They've been paying as much as $100,000 an episode for new TV shows and even spent a reported $100 million for a new show directed by David Fincher and starring Kevin Spacey.
It's a lot of spending, but Netflix is making up the difference in other ways. By utilizing third-party content delivery networks (CDNs), Netflix is saving big money. Back in 2009, Netflix was spending around five cents to stream a movie, but now it's costing them half of that.
Frost & Sullivan analyst Dan Rayburn says that while Netflix spent $100 million on streaming in all of 2009, it will only cost them around $50 million this year. Considering that fact that Netflix is set to stream even more content this year and that's a significant savings.