Original Content To Be An Increasingly Big Part Of Netflix's Content Spending Pie

Chris CrumBusiness, Finance

Share this Post

Netflix is going full throttle with its original content, and things aren't going to be slowing down anytime soon. New seasons of most of last year's originals are coming out this year, and first seasons of a handful of completely new shows are also coming out throughout 2014 (others are already scheduled for 2015).

Last year, Netflix said that it would double its original content spend in 2014, but it would still remain under 10% of its overall content spend. So they're still shelling out a lot more for content from other providers.

Netflix held its Q4 earnings discussion on Wednesday, and the the subject came up once again.

"It's gonna continue to grow," said content chief Ted Sarandos. "I mean it's been quite successful for us we feel like both in terms of viewing economics and in terms of brand enhancement and marketing, so I would just expect that it's gonna keep growing."

"Keep in mind it is within the total spend of our forecasted content spend, not in addition to," he noted. "So you should just think about it as a piece of the spend the way movies and TV and exclusives and non-exclusive content are all just in different buckets."

CFO David Wells chimed in, "It's likely to be under then ten percent. We just want to migrate away from the specific number because we've seen great success. We'll continue to invest in it. It'll continue to grow, and it will continue to grow in terms of the ratio of our overall content spend."

Image via YouTube

Chris Crum
Chris Crum has been a part of the WebProNews team and the iEntry Network of B2B Publications since 2003. Follow Chris on Twitter, on StumbleUpon, on Pinterest and/or on Google: +Chris Crum.