Why Netflix Is Betting on Adam Sandler

— -- Adam Sandler's recent films may not have ranked as high among the top U.S. box office earners as his earlier hits, but Netflix is making a bet that the audience that loved "Big Daddy" and "Billy Madison" still wants to stay for more.

Sandler will star in and produce four films exclusively for Netflix, the company announced today, on the heels of the news earlier this week that the company will produce a sequel to "Crouching Tiger, Hidden Dragon."

Though Netflix did not disclose the terms of the deal, the types of movies they will be, or names of other stars or directors attached to the projects, there was one telling line in the media announcement: "People love Adam's films on Netflix and often watch them again and again."

Sandler hasn't starred in one of the year's top 15 grossing films at the domestic box office since 2010's "Grown Ups," according to listings on BoxOfficeMojo.com. However, as a streaming provider, Netflix knows exactly how many Sandler films you have watched and how many times you have watched them.

"From what Netflix has done in the past, they know their audience and Adam Sandler’s popularity worldwide very well," said Neil Macker, equity analyst at Morningstar.

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"I think it’s a good deal for them and it allows them more content, which is one of their keys, basically, to fight off Amazon and cable, in general," Macker said.

Lucky for Netflix, Sandler films are not high-budget, special effects films that require hundreds of millions of dollars, Macker pointed out.

"These are not 'Transformer'-budget movies. They don't have a marketing budget, necessarily, worldwide and they're not trying to get wide distribution," Macker said. "You’re paying for talent."

Netflix is assuming they will gain subscriber "longevity" for each Adam Sandler fan, meaning they hope those fans continue as customers and keep generating revenue, said Adweek staff writer Sam Thielman. He adds that though Sandler has not had a critical hit in a while, he can still bring an audience. Sandler hit gold most recently with Grown Ups 2, which grossed $133.6 million, while his drama "Reign Over Me" in 2007 brought in $19.6 million, according to Box Office Mojo.

"There has to be enough content for people who like these films to keep them there for a long time," Thielman said. "There are other dumb comedies and fart joke movies on Netflix and they’re fun to watch."

Netflix did not respond to a request for comment from ABC News.