Monday's earnings and the second half of 2013 will be a big test for Netflix.
If Netflix's depreciation and amortization expense hits the company's income statement more than expected, or if its gap between cash flow and net income widens, investors may be underestimating the costs the company faces in making original shows.
While CEO Reed Hastings is right to see about 2 million new subscriber additions in the first quarter as validation of the appeal of original content, Netflix may need far more new users to prove the rationale to investors.
Hastings said earlier in 2013 he sees a total addressable subscriber market of up to 90 million users for Netflix. Ninety million users would do the trick in making House of Cards a profit generator for Netflix, however, it remains unclear whether 30 million users will suffice.-- Written by Antoine Gara in New York Follow @AntoineGara