What is the changing business model being described?
What opportunities and threats are offered by this model?

http://www.thewire.com/technology/2013/02/economics-netflixs-100-million-new-show/61692/

Netflix plan on turning into HBO of internet TV by creating a new production - House Of Cards and 5 new shows like that per year. Even though they will be paying $100 million for every two of 13 episode seasons. This means that if the shows are successful enough, then spending $100 million will not be a problem, and could infact be good for business for the company.

To break even, Netflix need 520,834 subscribers paying $7.99 per month for two years. To do that 5 times every year, Netflix would have to sign up 2.6 million more subscribers than they would have. Netflix currently have 33.3 million subscribers, this is an increase on less than 10% of what they need. However, it could still work, because looking at past growth for the company, which saw 65 percent growth from 20 million to over 33 million world-wide streaming customers. Last year, in the U.S alone, it saw 13% growth, jumping from  24 million subscribers to 27 million subscibers.

HBO gets about $7 per month, but splits it 50-50 between cable, so all together people are paying around $15 per month which is around the same as Netflix. Those revenues also pay for some of the most expensive TV on cable: True Blood came in at around $5 million per episode. The debut of Boardwalk Empire cost $20 million alone.

The problem with netflix is that their revenue is not growing as fast as their content costs.  This is because companies know they have power over Netflix because Netflix need those companies permission so people can stream from them, so the other companies are constantly increasing their costs. Netflix are overpaying Disney and Epix for streaming rights for their movies and TV shows, they are now paying $100s of millions to Disney and Epix.The table shows the deals that Netflix are paying which costs them billions.