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How Netflix defines success for it’s shows

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Alan Wurtzel, head of NBC Universal’s research team, suggested yesterday that broadcast networks need not worry about Netflix, considering “Jessica Jones”, the latest Netflix original show, had only 4.8 million average viewers per episode. Even if this is true, it’s important to note that the absolute number of viewer should matter less for Netflix. Why? And what then should Netflix be looking at? The answer is: Revenue per month per episode.  Let me explain. Let’s assume I really like “Jessica Jones” (JJ) and other superhero-type TV Shows. So, I pay Netflix $9/month and watch an episode every week (and that’s all I do). In this, intentionally exaggerated and hypothetical, scenario — I am paying Netflix ~$2.25/episode. If 4.8 million people are doing exactly this — Netflix can reasonably account that it’s revenue from each JJ episode is $10.8M ($2.25*4.8 million). Significantly more than $3.33M it cost them to make it (based on  this  story). This also impli...

Federal Economic Stimulus Plan

The Federal Economic Stimulus Plan (FESP) has been in the news for the last couple of weeks. Various news organizations reported the rebates that many of us can expect, $600 for individuals making upto $75,000 and $1200 for couples making upto $150,000. They also reported that the rebates phase out above those levels but fail to mention what the phase out plan looks like. I fail to understand why. Also, is the $75,000 based on your gross income or Adjusted Gross Income and for which tax year? I truly feel that journalists are turning into story writers focusing less on the facts and concerned more about writing a good story. Anyways, looking at the bill on http://thomas.loc.gov/cgi-bin/query/F?c110:5:./temp/~c110HfpSYR:e1754: these seem to be the details: (d) Limitation Based on Adjusted Gross Income - The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (f)) shall be reduced (but not below zero) by 5 percent of so much of the ...