18 April 2018
Netflix is all set to spend a whopping $8 billion on original content this year. The investment is part of company's strategy to differentiate itself from the competition and attract new paid subscribers. This would result in about 700 original titles being released in 2018 and 80 out of these will come from outside the United States.
The announcement was made by Netflix CFO David Wells yesterday while he was speaking at Morgan Stanley Technology, Media & Telecom Conference. He revealed that it is the huge catalog of content (movies and TV shows) which has helped the service become a leading player in the market which has competitors like Hulu, Amazon Prime, and Apple
Wells said that the company is willing to spend such a huge amount on the content because it is working for them so far. He further mentioned that there is no definite of knowing how much is too much when it comes to spending on the content. While Netflix has been focusing heavily on original content, he revealed that the service is always open to take content from anywhere as long as it is good.
In the statement, Well said, “Let’s continue to add content — it’s working, it’s driving growth. People don’t care where the stories come from. We’re about having the best content. We don’t necessarily have to do it ourselves.”
It is worth mentioning that Netflix reached a valuation of over $100 billion earlier this year and reported a surge in the user base. It is the addition of original content and continuous expansion of the catalog which is said to be crucial factors in the impressive growth seen by the company. It will be hoping to repeat the same with even bigger investment planned for the year.