Netflix to allocate 85% of new spending on original TV shows

Ted Sarandos Netflix

Netflix to allocate 85% of new spending on original TV shows

Differentiating its local original content from that of local broadcasters will help Netflix succeed in what he termed "a television starved market", speaking at the MoffettNathanson Annual Media & Communications Summit in NY.

Netflix may have started out as an online video streaming service that made it very easy for you to stream TV shows and movies from other networks and studios but it has since grown into a veritable original content powerhouse. He also said Netflix has a 470 originals scheduled to premiere between now and the end of the year, bringing the total up to around 1,000. In total, the company expects to spend $8 billion this year, though he wouldn't specify the exact amount for originals versus licensed content.

Plenty of content has already been announced for the coming days and weeks (May's lineup of new content is right here), but Sarandos revealed during his talk that 80 movies will hit Netflix this year, including cheap indie films and big blockbusters like Bright. Sarandos reacted that more than 90 per cent of Netflix's customers regularly watch original programming. Typically, Netflix and other streaming TV service providers try to raise their subscriptions rates as rarely as possible so as not to upset their members. Some of this investment is recovered through the monthly subscription fees people pay. Another survey found that two-thirds of Netflix's United States subscribers would stick with the service even if it raised prices to $15 a month or more. Netflix ended the first quarter of this year with 56.7 million subscribers in the U.

Part of the context here is that numerous studios that have sold their content to Netflix in the past are now either saving it for their own streaming services or looking to raise the prices.

"The creators we're talking to, they watch Netflix and they want to be on our network", Ted said, Via NY Post.

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