Why Netflix Spends $17 Billion on Shows

Added: 2026-05-16

[00:00:00]Netflix spends $17 billion a year than the GDP of dozens of countries.

[00:00:08]The reason is simple and brutal.

[00:00:11]The streaming business runs on what is called the 90/10 rule. About 90% of viewing time on any platform is concentrated on roughly 10% of its catalog.

[00:00:23]So, even though Netflix has thousands of titles, almost everyone is watching a small handful of hits at any given time.

[00:00:31]To stay relevant, Netflix has to produce a constant stream of new hits and most of them will fail.

[00:00:38]This is also why subscription prices keep rising.

[00:00:42]Every show that gets canceled after one season is a multi-million dollar gamble that did not pay off.

[00:00:49]Netflix is not really selling movies and TV, it is selling the next thing you might want to watch tonight. If they stop producing it, you cancel.