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Netflix says it plans to spend a whopping US$7 billion on content next year

By Kenny Yeo - on 17 Aug 2017, 10:30am

Netflix says it plans to spend a whopping US$7 billion on content next year

One of the key ingredients to a successful media streaming service is content and Netflix is doubling down on this area.

In a recent interview with Variety, Netflix Chief Content Officer Ted Sarandos said that he expects Netflix to spend around US$7 billion on content next year.

This amount includes acquiring licensed content as well as producing original content.

This figure also dwarfs reports that Apple is looking to spend around US$1 billion on procuring and producing its own original content in 2018.

While Netflix is famous for its original shows like House of Cards, Stranger Things, and Master of None, the company is still heavily reliant on licensed content. 

Sarandos said, "The vast majority is still licensed content. We're still a couple years from seeing it go 50-50."

And in response that Netflix's spending habits are becoming increasingly worrying, Sarandos said that the company isn't spending money they don't have. "We're spending revenue," he said.

Sarandos also talked about Disney's aspirations to launch its own video streaming service. He said that this is inevitable and that the company has spent the last few years producing original content in anticipation of this. He said, "We started making original content five years ago, betting this would happen."

Finally, Sarandos said that Netflix would focus on making about four "must-see" blockbuster-type movies a year and that subscribers can look forward to more reality TV and international content.

Source: Decider