Everyone in the tech industry is passing around this video of Kevin Spacey talking about how Netflix (and other tech companies) will blow up the traditional TV industry.

In an edited version of Spacey’s speech below, he talks about how Netflix, which has produced some of its own original series this year, has the potential to disrupt the traditional cable and network TV model of forcing content creators to make a pilot before accepting a show.

Spacey says there will be 146 pilots made this year at the cost of $300-$400 million. Only 56 of those will actually be made into a series. “That makes our ‘House of Cards’ deal for two seasons really cost effective,” Spacey says.

He also touches on how consumers are consuming content differently today and that “binging” on TV shows is common (i.e. watching four or five episodes of a favorite series in a row.) He states that content providers will have to start listening to their customers and providing them what they want, when they want it, or people will stop tuning in.

Watch it here if you haven’t yet – it’s worth every minute.