Netflix, Inc. (NFLX): 21 Revelations From This Just-Released, Mammoth Document

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On how it analyzes content: “Over the years, we’ve successfully developed the art of estimating how much our members will watch a given show or movie based upon how it has performed to date in other, earlier channels (theatrical for movie; broadcast and cable first-run for TV) and on how comparable titles have performed on Netflix. This generally enables us to avoid overpaying for content, relative to member enjoyment.”

-Netflix Long Term View, page 6

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