Netflix Ups Spending on Content, Lowers Spending on Streams

If you pay attention to what's going on at Netflix, you've probably heard about their big move toward streaming content. 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.

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