Netflix CEO Reed Hastings once called his company a "rerun TV" company. Its transformation into an original content machine is impressive — and really expensive.

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Data: YCharts, FactSet; Note: Share price adjusted for stock splits; Chart: Harry Stevens/Axios

It takes about 2 years for a new show to go from production to screen. That means 2 years before Netflix sees a single cent in the form of marginal subscriber revenue from any given original show.

Driving the news: Netflix expects it will burn a bigger-than-expected $3.5 billion this year. Hastings sees the epic cash burn as a good thing for the company; still, he has reassured investors that 2019 will mark be “peak” negative free cash flow for his company.

  • The near-consensus view for Wall Street's Netflix bulls is that its cash burn ultimately doesn’t matter, especially if it's consistently growing its subscriber base.

By the numbers: Judging by the stock's performance since Netflix went public in 2002, investors like Netflix whether the company is burning huge sums of cash or not.

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Updated 8 mins ago - Politics & Policy

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Illustration: Sarah Grillo/Axios

  1. Politics: Biden ahead in Wisconsin, Michigan as cases surge in the Midwest.
  2. Health: Surge "is real" and not just caused by more tests, Trump's testing czar saysMask mandates help control rise in hospitalizations Some coronavirus survivors have "autoantibodies."
  3. Business: Surge is sinking consumer confidence Testing is a windfall.
  4. Media: Pandemic causes TV providers to lose the most subscribers ever.
  5. World: Germany to close bars and restaurants for a month Putin mandates face masks.

Parties trade election influence accusations at Big Tech hearing

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A Senate hearing Wednesday with Big Tech CEOs became the backdrop for Democrats and Republicans to swap accusations of inappropriate electioneering.

Why it matters: Once staid tech policy debates are quickly becoming a major focal point of American culture and political wars, as both parties fret about the impact of massive social networks being the new public square.

1 hour ago - World

Germany goes back into lockdown

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German Chancellor Angela Merkel will enact one of Europe's strictest coronavirus lockdowns since spring, closing bars and restaurants nationwide for most of November, Reuters reports.

Why it matters: Germany is the latest European country to reimpose some form of lockdown measures amid a surge in cases across the continent.