Originally Posted by PSound
I guarantee you that statement as a standalone is not accurate. The Netflix financial data simply does not support that.
If that was true, Netflix would be reporting much more than 15% margin for the overall business.
Now the disc-by-mail business might be right around 20% of revenues going to the studios, down from a traditional ~33%. That is because 33% of revenues goes to the post office, and the studios discounted their material for Netflix in exchange for rental delays.
Plus Netflix needs less new discs and can ship tons of discs that have already been fully depreciated.
Studios and networks are probably seeing right around 70-80% of revenue from streaming, and higher percentage for international as those markets ramp up.
That doesn't leave them much wiggle room for renegotiating, which they would need to land the much more expensive contracts that would more accurately reflect the larger sub base. If you're right though, a hefty rate hike will follow.