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by rz2k 4390 days ago
Does anyone here happen to know how Netflix is charged for content? Specifically, do they pay owners per viewing while they have a title licensed, or do they license get a license for unlimited customer uses? And, even if they do get rights for serving an unlimited number of viewings, do they have to supply the usage data to the content owners, who may use the information in future negotiations.

I ask, because it seems like these details would have pretty significant impact on Netflix's incentives for effective recommender systems and user portals. They would need to balance the satisfaction rates necessary for retention of subscribed customers with variable costs of serving content, especially recently released feature films.

1 comments

Content owners are paid for unlimited viewings during a specific window of time. Here's a guide to how some of those windows work: http://www.vodprofessional.com/features/a-guide-to-pay-windo...

It's Byzantine, and must be renegotiated studio by studio and sometimes film by film.