tdgeek:
Netflix doesn't have any production costs
At the cheap as chips price its always been, they still lost money. I think now its possibly just in the black in last year or so? Up the price $5 or $10 per month and the business is sorted for the future. Same would apply to the other competitors I would imagine. As @networkn stated earlier a 30 dollar price seems possible, and I see that as fair. USD or NZD, around there anyway. $30 to watch unlimited movies and TV, with some brand new hot exclusives? Sounds a cracker deal to me
Its in the black only by way of how it accounts for and amortises content costs. The Net Profit is not the one to watch - watch the cashflow cos content costs upfront and you hope it pays for itself over its lifetime.....