Infographic: The Economics of Netflix and their Big Bet on Big Data

When I heard about the astronomical amount it cost to make House of Cards I have to admit I was pretty perplexed. Maybe it’s my humble Jamaican beginnings but $100 million for 13 episodes of a new show seemed like an awful lot, Kevin Spacey (one of my favorite actors) notwithstanding. The folks at greatbusinesschools.org take a stab at understanding Netflix’s strategy in their handy infographic below.

What the nerd in me found most fascinating was their analysis of Big Data on viewing preferences to cut 10 different versions of the trailer for House of Cards. Do you think Netflix’s model is sustainable?

EconomicsNetflix