Quote:
Originally Posted by TinyRedLeaf
It would be even more interesting if we could do the flip side of the mathematics, that is, what are the estimated costs of running a service like Crunchyroll or Netflix? What are the licensing costs? What are the overheads? The cost of running and maintaining a server farm and the network? How much labour are we talking about and what do they cost?
Revenues of US$5million a year may seem juicy... until you take a look at the margin.
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Operating expenses for 2006-2010 for netflix is roughly 25.5% of the revenue, excluding taxes, dividends, COGS, etc.
Net income is around 6.42% of total revenue.
Though what I find fishy is that the cost of goods sold accounts for 64.3% of the total revenue earned, I wonder if some creative accounting is involved so they could pay a little extra to the bosses who negotiated the licenses to redistribute the content.
Btw, note that the article mentioned "revenue", not "income", meaning which costs and taxes and equity payouts are not factored in. I would like to see their financials if they have the guts to claim profit is made.