Time Warner VP Is A Subscriber To Netflix

Time Warner Olaf Olafsson said he's a subscriber to Netflix (Nasdaq: NFLX). Olafsson said it is early in this streaming media business and he likes what Netflix offers, but he doesn't know if the financial model makes sense.

Time Warner's Olafsson say for $7.99 a month, "how much premium content can they really afford on a streaming service?"

It is expensive to get rights to first run feature films or TV episodes. Olafsson questions if the economic model will work for Netflix to compete with first run movies at only charging $7.99 a month. Olaf Olafsson says it will have to be more expensive than $7.99 a month.