Netflix exec says 85 p.c of recent spending will go in direction of unique content material

In case you had any doubts that unique content material is an enormous precedence at Netflix, Chief Content material Officer Ted Sarandos estima...


In case you had any doubts that unique content material is an enormous precedence at Netflix, Chief Content material Officer Ted Sarandos estimated that 85 p.c of the corporate’s whole spending goes to new reveals and films.

That’s in keeping with Selection, which reported on Sarandos’ remarks immediately at MoffettNathanson’s Media & Communications Summit 2018 in New York. He additionally mentioned Netflix has a 470 originals scheduled to premiere between now and the top of the 12 months, bringing the entire as much as round 1,000.

It’s most likely not stunning that the service is prioritizing originals. In spite of everything, Netflix appears to be highlighting a brand new unique each time I open it up, and opponents like Apple, Amazon and Hulu are ramping up their very own spending.

However the depth of Netflix’s library, which is achieved by licensing content material from others, has at all times appeared like a power — the truth is, a current research discovered that licensed content material generates 80 p.c of Netflix viewing in the US.

A part of the context right here is that most of the studios which have offered their content material to Netflix previously at the moment are both saving it for their very own streaming providers or seeking to elevate the costs.

And whereas motion pictures account for one-third of viewing on Netflix, Sarandos pointed to new, massive price range titles as one space the place it not is sensible for the streaming service to spend a ton of cash — as a result of when you actually wish to catch the newest blockbuster, you most likely already noticed it in theaters.

“We mentioned, possibly we are able to put the billion we’d put in an output deal into unique movies,” he mentioned.

Sarandos additionally sees a possibility to develop extra unscripted content material like Queer Eye, and to signal massive offers with high-profile showrunners like Shonda Rhimes and Ryan Murphy.

Netflix had beforehand projected that it could spend $ 7 billion to $ eight billion on content material this 12 months. And simply immediately, Netflix introduced that it’s renewing Misplaced in House for a second season (we have been followers of season one) and picked up 10 After Midnight, a horror anthology sequence from Form of Water director Guillermo del Toro.

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