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Netflix Limits Growth to Appease Studios

Netflix Limits Growth to Appease Studios

Netflix share price has risen steadily over the past four months as expectations for growth have been very good. But the company has recently capped it’s profit margins at 10% to appease studios that fear excessive price cutting by retailers is hurting the bottom line of the production companies. Redbox in particular has cut prices to the point where the studios cannot profit. Any Netflix profits in excess of the 10% are to passed along to the studios in the form of additional payments for streaming media. The company is set in increasing … Read more at Netflix Free Trials

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