NEW YORK - Netflix the online media distributor has confirmed a deal with Kevin Spacey to launch a new TV series, named the "House of Cards." . The deal is extremely pricey at $100 million just for the right to show the television show on their site. Netflix will also pay a portion of the productions costs with Media Rights Capital financing the rest. Netflix's fee is capped if the show goes over budget.
Netflix is committed to 26 episodes. Some analysts are wondering if this could this deal be the one that tumbles Netflix's "house of cards?" The show is unlikely to add new subscribers because it is an unknown. Netflix's current subscribers may remain more loyal if the show is at a correct price, or its free.
What is known is Netflix will spend another $100 million in content. The company is already locked into spending over $1.2 billion in content in the next 2 years, which Netflix is betting it will be able to pay for.
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