Netflix powers ahead; will become second biggest investor in US programming
Netflix could spend as much as $5bn on content in 2016 - more than the $4.5bn estimated to be currently spent by HBO, Showtime, Starz and Amazon combined.
Netfllix: A big leap forward
Screen Daily, quoting analysts, said Netflix is expected to invest around $3.3bn in programming this year, meaning the 2016 projection from Janney Capital Markets would represent a 50 per cent boost in spend.
Netflix would become the second biggest US investor in programming after sports broadcaster ESPN.
Tony Wible, managing director of entertainment and digital media at investment firm Janney Capital Markets said that Netflix’s international growth, with more than 57 million paid subscribers, is driving this boost.
“The spend builds a competitive advantage and virtuous cycle as it draws in more subscribers that allow it to afford more content,” he said.
“Amazon’s investment exemplifies the competitive hurdles as it is spending roughly half of what Netflix does in the US but yet Netflix is seeing 1,250 per cent greater usage.”
Screen Daily said the programming spend includes the acquisition of rights, both in the US and around the world, as well as its growing expenditure on original programming.
Netflix chief content officer Ted Sarandos has said they were looking to produce 20 original series per year.
He plans to build on shows such as $90m epic dramaMarco Polo and forthcoming dramas including Tina Fey-produced Unbreakable Kimmy Schmidt, Wet Hot American Summer, legal drama Bloodline, a Jane Fonda-fronted comedy and Marvel adaptations including Daredevil.