Investors are cheering on Netflix as it moves from DVDs to streaming video, and keeps adding customers along the way. But "digital" doesn't equal "cheap" for Reed Hastings' company. In fact, the online move has cost Netflix at least $1.2 billion.
That's the amount Netflix has committed to paying Hollywood studios for the rights to stream their movies and TV shows. And it's up from $229 million three months ago, the company disclosed in an SEC filing yesterday.
Most of that leap comes from a five-year deal that Netflix previously announced with … Read more