Netflix announced that its subscription costs soared 28% in the quarter. No wonder its profit margins are under pressure, as seen in the chart below. (Buying content has gotten pricier, too.) ...

Netflix's business model has always relied on "binge-watching" distribution, but a new hip hop competition reality show will break that mold and air over the course of several weeks.

Depreciation provides a convenient model for understanding a worrisome area of the company's current operations: the acquisition of original content. Does negative cash flow spell trouble for Netflix?