There has been a lot of buzz about Netflix in the last year, even here in Australia where the video streaming service hasn’t officially launched (yet is watched by many who find ways around the geo-blocking).
Award-winning new programs like House of Cards, Orange is the New Black and Lilyhammer, created and aired on Netflix have transformed the one-time DVD mailing service into a new media force to be reckoned with, causing yet more anxiety amongst TV networks and subscription television and acting as a pointer to what could soon trouble the major movie studios.
Netflix is now so popular that it gobbles up a third of peak internet traffic in North America.
So how does this brave new world of streaming content work and how does Netflix make money? This new infographic explains the economics of Netflix.