Profit of movies streamed on Netflix

Basically the movies that are streamed on Netflix aren't released in theaters, right?

So my question is - How do production companies make profit after streaming their movies on Netflix?

Of course, they would be paid money for streaming on Netflix.
All the marketing that Netflix does, the revenue generated would go in their pockets and not the production companies.
For any new movies coming to Netflix the subscriber doesn't need to pay extra money; so be it any movie, old or new, the subscriber simply has to pay his/her amount.

Now there are some cases where, had a movie released in theaters, it wouldn't have been a hit; and instead selling the rights to Netflix, they made profit.

But for some movies, e.g Bright, which had its own strong fan following, had they released in theaters wouldn't they have made more profit?

Best Answer

They don't. The film or series is wholly owned by Netflix after production if it's a Netflix Original, or has had its licence purchased at a flat cost for a fixed period of time and may be renewed in future if it's popular.

Netflix apparently usually pay upfront for at least two seasons of a netflix original show, and have a business model comparable to more conventional subscription TV (like Cable) when dealing with series' that aren't Netflix Originals. That is, they buy the right to "air" it for a period of time.

In some cases maybe a netflix original film would be cinema suitable, but the series' likely would not, and by limiting the shows to their own platform they provide content that cannot be found anywhere else. Meaning they attract subscribers simply by exclusivity.