Netflix, Amazon Stuck in Old TV Model

Netflix, Amazon.com and the rest of the so-called “over-the-top” television services have changed the way people consume video.

But these companies have done little to change the way original shows are developed and funded, despite rhetoric to the contrary. And as these new-era networks grow in scale and ambition—and costs subsequently increase—they’re running up against the same problems that have plagued traditional media companies for decades. Namely, creating content is expensive and wildly inefficient.