Netflix Investing Big on Original Content
With both Disney and Amazon investing big on their online streaming platforms, Netflix is looking to secure its dominance by doing the same. In fact, the streaming giant is spending $8 billion on original content in 2018. According to CFO David Wells, their goal for the year is 700 original TV series and movies, which should help keep the subscriber base strong.
When asked how much spending content is enough for Netflix, Wells responded that “there’s no magic line where you know exactly where you are”.
Is Netflix Also Increasing their Marketing Budget?
The short answer is ‘yes’. Which only makes sense since their goal is to maintain steady growth. While they have been experimenting with surprise releases, and spending big on single events such as the Superbowl advert for The Cloverfield Paradox, a consistent and larger marketing budget will be the key for a further international reach.
In fact Netflix’ marketing is spending more than 50% in 2018, from $1.3 billion in 2017 to $2 billion. Although some of their original content releases are not critical darlings, this does very little to dissuade them. This includes the recent fantasy action film ‘Bright’ starring Will Smith. In fact they are doubling down and ordering a sequel. This suggests that the streaming numbers justify the investment, despite what critics say.
What Can Viewers Expect in 2018?
Disney now owns Star Wars and 21st Century Fox, securing plenty of content for their upcoming streaming service. This includes Fox’ animation lineup like The Simpsons and Family Guy. Amazon is also investing billions including buying the rights and developing a Lord of the Rings TV series. So 2018 for Netflix requires some very aggressive moves to stay ahead.
Which is why a good chunk of their billions this year is spent on signing exclusive deals with content creators. Notice that this is the marked difference between Netflix and other services. While Amazon and Disney are investing big money on proven properties, Netflix is investing big money on proven creative individuals to create new content. In particular, their most recent exclusive deals include signing on Fox’ Ryan Murphy and ABC’s Shonda Rhimes.