Entertainment

So, How Does Netflix Make Money?

There are a lot things you don't know about Netflix, but the main question most binge-watchers have is: "How does Netflix make money?" It's a valid question, as Netflix spends more money than you probably realize, and the company is still technically in debt despite being valued at over $100 billion. 

Netflix is the gold standard of online television streaming in large part due to its head start on its competitors. That head start seems to be paramount, as Netflix continues to outpace Amazon Prime and Hulu in terms of growth in this sector. 

That said, Hulu and Amazon Prime have both stepped up their games, and now all three services offer really great original content in addition to growing libraries of licensed movies and shows. As such, Netflix's competitors are pushing the company to improve its service, and Netflix is rising to the challenge. Yes, Netflix actually does make money; let's take a look at precisely how they manage it.