• 43 mins Markets Crumble As Coronavirus Panic Peaks
  • 5 hours Cobalt May Be The Key To Clean Hydrogen Fuel
  • 2 days How Taxpayers Are Bankrolling The EV Revolution
  • 3 days The Coronavirus Is Crushing China’s Car Market
  • 4 days Fighting For Survival In The Streaming War
  • 5 days Want A Job? Forget About A Bachelor’s Degree
  • 5 days Another Major Car Maker Is Backing Hydrogen
  • 6 days Are Americans Finally Sold On Soccer?
  • 6 days Is The Tech Bubble About To Burst?
  • 7 days Coronavirus Could Cost Tourism Industry $80 Billion
  • 7 days What Web Traffic Trends Can Tell Us About The World
  • 7 days Miners Face Greater Headwinds
  • 8 days Boris Johnson Proposes Billion Dollar Bridge To Northern Ireland
  • 9 days Goldman Slashes Oil Price Forecast By $10
  • 10 days Tesla Raises $2 Billion In Share Selloff
  • 11 days What The T-Mobile Takeover Of Sprint Really Means For Markets
  • 11 days The U.S. Has Charged Huawei With Racketeering And Conspiracy
  • 11 days How Hydrogen Could Become The Fuel Of The Future
  • 12 days Millennials Can’t Retire, But They’ll Still Have To Help Their Parents
  • 12 days This Gold Miner Just Increased Its Dividends By 40%
Want A Job? Forget About A Bachelor’s Degree

Want A Job? Forget About A Bachelor’s Degree

Despite the exorbitant--and rising--costs of…

Is The Tech Bubble About To Burst?

Is The Tech Bubble About To Burst?

The technology sector may come…

Another Major Car Maker Is Backing Hydrogen

Another Major Car Maker Is Backing Hydrogen

The hydrogen fuel cell market has…

  1. Home
  2. News
  3. Breaking News

Can Anyone Compete With Netflix?

Netflix

Netflix is on a tear, remaking virtually everything and now estimating that 85 percent of its total spending is going to original content, which would suggest it’s going up against Hollywood giants, not just cable companies.

Speaking at a media and communications summit in New York recently, Netflix Chief Content Officer Ted Sarandos said the company now has 470 originals scheduled to premiere by the end of this year. That would mean a total of 1,000 original shows for the streaming behemoth.

But it looks even better in dollar figures: Netflix content spending for this year will be up to $8 billion, with the “bulk” of that spent on originals.

In less than a decade, Netflix has become one of the biggest buyers of video in the world.

Now we’re looking at Netflix phase two, because in the past 80 percent of Netflix viewing in the United States was from licensed content, but with the advent of a new streamlining services by studios themselves, the amount of available licensed content is dwindling because studios are holding out.

As Sarandos pointed out, “maybe we can put the billion dollars we’d put in an output deal into original films”.

It started out with big hits like House of Cards and Orange is the New Black, but now it’s widening its net to see what it catches. Netflix won’t be cast-type, either, like HBO, or—worse—Hallmark. There will be something for everyone, including B-movies.

The company is also stepping up true originals—those they actually produce rather than rebranding them as originals, as they did for House of Cards and Orange is the New Black. Pop-culture hit Stranger Things was a true original, as was 3 percent, and we should see much more of this coming up. Related: Is Gold Only For Long-Term Investors?

And the need for loads of fresh content is crucial as the competition stiffens, with Disney and Apple planning their own streaming projects, and Amazon Prime and Hulu posing a hefty threat.

It’s already seriously dented the cable and satellite business. In 2013, cable and satellite recorded their first-ever drop in subscribers, year-over-year. And it’s gotten worse every year since.

(Click to enlarge)

Source: MotleyFool

By the end of last year, Netflix boasted more than 120 million subscribers globally, generating $11.7 billion in revenues. Disney’s studios generate around $32 billion but not from subscriptions, so it’s more difficult to compare.

Some predict that Netflix could generate $50 billion within five years—or at least top Disney by then.

Regardless, it’s enough to force Hollywood to try to ‘supersize’, as evidenced by the AT&T-Time Warner hoped-for mega-deal. Hollywood is having a hard enough time keeping up with Apple, let alone Netflix.

Forbes poignantly notes: “As merger maneuvers continue across Hollywood, the tech companies continue to grow and iterate and do deals with the brightest and best creators in town. As Hollywood plays M&A games, the new competition is playing the game for actual customers.”

(Click to enlarge)

Netflix is now valued at over $142 billion, and it’s share price loves the original content news:

By Jan Bauer for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment
  • b on May 22 2018 said:
    net flex will go down in flames like Obama and mikkee

Leave a comment