Time Warner’s Turner Broadcasting did its first deal with Netflix that year. Another transaction the following year brought in more than $250,000 per episode for reruns of shows like Robot Chicken and Aqua Teen Hunger Force, according to the former executive. Time Warner figured Netflix’s money would make up for any lost advertising revenue from viewers who watched on Netflix instead of a cable box.
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This year alone, some 6 million people are expected to ditch satellite and cable, causing a major pain point for the providers of digital entertainment. Welcome many of the same companies (DirecTV and Dish Network), along with YouTube, Hulu and Sony, in a different sort of offer. A smaller collection of channels, along with broadcast TV locals, no equipment required, and an average price of around $40 monthly. (Along with your internet subscription.)