Is Netflix Itself Just a House of Cards?

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July 23 (Bloomberg) -- Bloomberg's Scarlet Fu examines Netflix's money cycle as the streaming video hub increases spending on creating original content. She speaks on Bloomberg Television's "In The Loop."

May continue rising this -- is a mission that contact cost may continue rising this year.

There's the idea that spending on programming will attract more people signing up for netflix.

The annual budget on content right now is about $2 billion.

Netflix spends about 5% of that on original program.

When netflix is not make its numbers, the circle turns into a vicious cycle.

That is what we are seeing this morning.

Netflix own program, that hogs the headlines.

Content deals are also key to retaining subscribers.

What about some of the latest deals?

Original programs help attract new subscribers.

The studio content is a must- have component.

Recently netflix aimed to get exclusive theatrical content from disney and dreamworks.

Reed hastings mentioned on the conference call that they did let a broad content deal with in tv network expire.

The bottom-line is that the stock has risen so much on it high-profile successes and even though half it increased five percent, the growth numbers are perhaps not strong enough to justify that stock performance in meaning to lot of questions about spending.

Thank you.

In washington, a bill to wind down fannie mae and freddie mac.

This text has been automatically generated. It may not be 100% accurate.

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