Monday, January 30, 2006

Hacking NetFlix : Networks Make $1.44 on iTunes Video Downloads

Hacking NetFlix : Networks Make $1.44 on iTunes Video Downloads

Interesting info about how some of this works for those of us not in the industry. I found this from the Hollywood Reporter article interesting as well

The content owners take from downloading is nearly the same that a commercial-fee TV series episode generates from a DVD boxed set, according to Nielsen Entertainment analyst Larry Gerbrandt, who has done the most exhaustive analysis of on-demand program economics to date.


The down side of this is that the content owner can make the same amount of money without any real work. Assuming all the costs for the media (art work, etc) and bonus material. This could mean that future DVD releases will have less materials, or they will jack up the costs with the bonus material being an excuse.

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