Netflix Plays New Role: Budget-Conscious

Netflix's metrics-driven approach shows up in other ways. For instance, it now routinely ends shows after their second season, even when they're still popular. Netflix has learned that the first two seasons of a show are key to bringing in subscribers--but the third and later seasons don't do much to retain or win new subscribers. Ending a show after the second season saves money, because showrunners who oversee production tend to negotiate a boost in pay after two years.

Data is magic.