It's no secret that Netflix has invested a lot in its slate of original content, and has publicly said that the reasoning was because it didn't like to be in the position of losing content when contracts ran their course and the rightsholders went off to do something else. While we know how much Netflix has pledged to spend on original content over the next few years, we know how exactly how much of its budget is being spent on it. It's 85 per cent, in case you forgot to read the headline.
We've known since last October that Netflix had set aside $8 billion to develop original content, and now we know just how big an investment Netflix has been willing to make. Obviously $8 billion is always going to be judged as a lot of money to spend on TV and films, but the fact that it's 85 per cent of its spending shows just how serious Netflix is about lessening its reliance on third-party content providers.
The good news is that Netflix has been responsible for a lot of great stuff over the past several years, with a diverse range of programming to try and match the varying wants and needs of the audience. Whether it's Marvel TV shows, stand up comedy, talk shows, or films of varying quality. You have to keep that subscription revenue coming in, and the best way to do that is make sure there's plenty of things for subscribers to watch - and that there always will be.
The idea is for Netflix to increase its slate of original programming from 470 pieces to 1,000 pieces before the year is up, which is definitely no small task. According to Content Chief Ted Saranos the company's tactics involve recruiting filmmakers that already like and use the service. Telling Variety:
“The creators we’re talking to, they watch Netflix and they want to be on our network.
The way we can secure those shows is having a great reputation with talent, having a brand people want to be associated with, and a good track record of delivering.”
With other media companies realising how lucrative streaming can be, particularly where original online-only content is concerned, Netflix is going to have to deal with a lot of competition in the future. Why would they hand over their content to make Netflix money when they can try and monetise it for their own services? That seems to be Disney's plan, plus with the power and franchises Mickey Mouse has under his belt you can safely assume that Netflix will be worried.
Although Saranos doesn't seem to be giving off much of a fear vibe, and when asked about Disney's streaming ambitions he simply said:
“I don’t know what took them so long.”