Great question — answering as the UphillTech team:
Think of Netflix like a TV station, BBC, NBC, Disney [1] etc. They're a 'broadcaster' - they run a TV network. Just because their distribution model is different doesn't mean everything else is. They make their money from broadcasts. They spend it on content to make people want to pay for that service. So, they buy a TV show or movie. They hire a director, producer, work with script writers. They rent studio time, hire actors, technicians, the hundreds or thousands of people it takes to actually make a show. They may in fact simply pay an entirely different production company to handle everything on their behalf [2] . This is for two simple reasons. Convenience. The production company has...
Full answer by Tetsujin: https://movies.stackexchange.com/a/108490 (CC BY-SA 4.0).
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