It's clear that this whole 'original programming' thing is doing quite well for Netflix, and not just because every other streaming service out there is following suit. Netflix has revealed it'll be spending $8 billion on original content, with the intention of ensuring 50 per cent of its catalogue is original sometime next year.
This news isn't exactly surprising. Last year the company announced a $6 billion for original programming, and with yesterday's earnings call leading to a record share price it makes sense that the company is in a position to continually invest more money into its content.
Chief Content Officer Ted Sarandos has confirmed that a significant amount of that $8 billion is being spent on 30 new anime series and 80 original films, all of which are due to be released next year. I can only assume around 50 per cent of those films will star Adam Sandler and/or his friends. While Netflix has always been unwilling to share viewership figures, it's safe to assume that both of these categories are doing well for the company. The Verge also points out that investing in these areas opens up the possibility for new creative partnerships in the future.
According to the earnings call, Netflix gained an extra 5.3 million global subscribers, which is well ahead of the 4.5 million predicted by Wall Street forecasts. This caused the share price to rise by 1.2 per cent, which totals 64 per cent growth over the course of the year.
Netflix's growth is in part attributed to its head start in the world of streaming, though it is facing increased competition from companies who want to carve out their own slice of streaming revenue. In particular a lot of focus has been placed on Disney's decision to pull content in 2019, so that it can launch its own streaming service. This news was mentioned in a recent investor letter, emphasising that Disney's decision was why Netflix needs to develop its own original content and continually improve its service for all its customers. [The Verge | Reuters]