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But there is no valid reason why Netflix should have placed a blind, $100 million bet on a new series. Of all the distributors of television programming, Netflix is in the best position to develop more lean and nimble proofs of concept and to serve them to the right audience.

Unlike a traditional TV network, Netflix has the unique ability to put content in front of millions of targeted, interest-based viewers in incredibly short order. It has better taste profiles and matching algorithms than AMC, ABC, or big advertisers could ever dream of. Why, for instance, couldn’t Netflix buy scripts – or hell, get into the blind script business with established writers – and then test them out before fully committing to them?

http://priceonomics.com/the-economics-of-a-hit-tv-show/

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