Netflix Inc. is ready to invest $5 billion on its content
According to news, Netflix Inc. is all set to invest a massive $5 billion on its content. To be precise, the streaming giant will be ‘doubling down’ on its original programming and production from the next year in order to be more inclined towards their objective of original content production. However it is to be believed that the company would still not be capturing the full scope of its programming objectives. The main objective is to be the dominant force in the original content and production domain but for now the company is only increase the portfolio of its original productions.
Next year, the company will push further to create and improve content by investing $5 billion. This investment will cover all the licensing costs of online movies and TV shows as well as the original content production. The company spent only $2 billion on content in 2013. This shows how determined Netflix is to dominate the original content space.
Netflix is spending almost everything it has on its content in order to improve the quality and focus of its content. The streaming service giant recently is well known for a few popular programs such as Narcos and House of Cards and the content does tell the difference between itself and its rivals Hulu and Amazon Prime. A source suggests, “a renewed focus on original content is precisely why Netflix had absolutely no qualms about letting its movie deal with Epix expire, losing thousands of films in the process, including popular titles like The Hunger Games: Catching Fire.”
Furthermore, analysts and professional believe that the company will have over 10 series more of its own than the powerhouses of the industry such as HBO and FX/FXX starting 2016 onwards. Netflix is expected to be flooding the market soon with its own original content.
According to Josef Adalian who wrote in Vulture regarding the company’s content, “[The] rapid rise of Netflix as a source of original programming is breathtaking — and without recent historical precedent. FX and HBO, for example, had been in business for one and two decades, respectively, before they began seriously expanding their scripted offerings — and then did so at a much more measured pace than Netflix.”
Netflix is the only company apart from ESPN to be spending such a hefty amount on media content and programming in 2016. Therefore, its original content costs in the coming times will be way more than that of HBO, Amazon, and Showtime combined.