HBO generated $1.8 billion in operating profit in 2013, propelled by revenue growth of four percent (to reach $4.9 billion).
Netflix's revenue rose 21 percent in 2013 to $4.37 billion and $228 million in operating income.
Netflix is growing faster, and already generates more gross revenue than HBO, though HBO has much higher profit margins.
You might argue Netflix is more exposed to a slowdown in growth, as it will have to increase spending on original content.
Friday, February 7, 2014
Would You Rather Be HBO or Netflix?
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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