It's no secret that Netflix has changed the traditional distribution model surrounding consumable entertainment. From a direct-to-door DVD delivery service to the premiere content streamer in the world, Netflix is at the top of its game.
The streaming giant reportedly spent upwards of $12 billion on original content last year and according to new reports, is looking to spend over $15 billion on additional original programming this year alone.
"We believe [Netflix] could, if it chose, ramp margins more quickly by limiting growth in its substantial investment in global marketing and production, but it is (wisely) playing the long game," Morgan Stanley's analyst Ben Swinburne mentioned earlier this week. The analyst reiterated an "overweight" rating on Netflix shares and set a $450 per share price target."
Netflix has had a string of super-hits as of recent, ranging from the Sandra Bullock-led Bird Box to a new season of the former Lifetime show You. Though Netflix has traditionally kept viewer numbers close to the vest, their recent successes on original programming have given the streamer cause to celebrate.
According to the service itself, Bird Box has been viewed by over 80 million households in its first four weeks on the platform.
At this point, it's still rather difficult to translate on how Netflix numbers would compare to traditional box office receipts between the logistics of streaming versus buying tickets and going to a theater. Even if half of the people that watched Bird Box bought a $10 movie ticket — that'd roughly translate to a $400,000,000 million haul in four weeks, a pretty substantial amount compared to most box office blockbusters.
The increase in spending comes right at the time where Netflix has begun to lose licensed programmers from former partners like Disney and WarnerMedia. Both of the companies are currently in the process of developing their own streaming platforms and in the case of Disney, Netflix has started to distance themselves from the company by canceling Disney-owned properties like Daredevil, Iron Fist, and Luke Cage.
Netflix has a slate chock-full of new releases for the upcoming year, including live-action adaptations of graphic novels like The Umbrella Academy and Polar. The third season of the massively-popular Stranger Things will drop in early July and follow-up seasons to shows like The OA and Lost in Space are expected shortly.1comments
While that's just a sample of what Netflix has on the release slate for this year, the streaming giant has much, much more in production — making it quite evident that they're serious about investing in original content for the future.
Are you surprised Netflix is spending so much money on original programming? What's your favorite original Netflix show or movie? Let us know your thoughts in the comments below.