CAA TV literary agent Peter Micelli revealed how Netflix - and other digital media upstarts - make deals in Hollywood during a panel discussion at the UCLA Entertainment Symposium, reports Variety.
Micelli told a crowd of more than 500 lawyers in the entertainment business: "The cheapest show is $3.8 million an episode. House of Cards started at $4.5 million and [executive producer David] Fincher took it way above that."
He also gave estimates for two upcoming Netflix series - Eli Roth horror Hemlock Grove and the Jenji Kohan comedic drama Orange is the New Black.
Micelli said: "The next series is Hemlock Grove and they're doing that for about $4 million an episode. Orange is the New Black is just under $4 million as well. They're huge-budgets shows, they're doing things in a huge way."
He also noted during the panel that Netflix is spending even more than broadcast networks are paying out for hour-long series, which rarely exceeds $4 million per episode.
However, he revealed that Netflix may face some competition soon for high-end programming buys from Microsoft.
Micelli divulged: "They'll pay a large percentage of the budget for it. They control it for four years exclusively and then you can turn around to re-sell to a linear cable channel.
"But right behind them is Xbox and Nancy Tellem. She's going in looking at it in a similar way to Netflix."
Watch a trailer for House of Cards below: