Hot on the heels of news that Apple has set aside $1 billion for original TV programming over the next year, Netflix revealed on Wednesday that it will spend seven times that amount in 2018.

In a new interview with Variety, Netflix's chief content officer Ted Sarandos quoted the number of $7 billion, which is up from more than $6 billion in 2017 and $5 billion in 2016. The vast majority of Netflix's budget is spent on licensed content, but the company is working towards balancing that out with more in-house content over the next couple of years, Sarandos said.

netflix ipad pro

Some analysts and industry insiders are skeptical of the company's spending habits, arguing its stock is overinflated (it's soared to more than $170 a share, up from around $50 in early 2014, adjusted for a 2015 stock split). "We're not spending money we don't have," Sarandos counters. "We're spending revenue." The company reports its debt load is $4.8 billion, with an additional $15.7 billion in long-term content commitments with studios. "We have one of the low debt levels in the industry," insists Sarandos.

Using its budget, Netflix has produced some successful regional TV series such as the German show "Dark". The company hopes to increase that number to up to 100 series in the next couple of years. Netflix is also continuing to push into reality TV programming, with 50 unscripted shows coming to the streaming service next year. Feature films are already on the company's radar, with movies such as War Machine and Sandy Wexler having already debuted, and Bright starring Will Smith set for release in December.

For its part, Apple is said to be planning to procure and produce up to 10 original TV shows over the next year as it seeks to make up ground on services such as Netflix and Amazon. The $1 billion budget figure is about half of what Time Warner's HBO spent on content last year and around the same amount as Amazon spent in 2013, after it announced its own move into original programming. Apple has already kicked off its original programming schedule with "Planet of the Apps" and "Carpool Karaoke", although both shows have come in for criticism from reviewers.

Tag: Netflix

Top Rated Comments

Cloudsurfer Avatar
52 months ago
I would pay a lot of money to have a streaming service based on iTunes' movie library. All this original content crap is just a content filler because no one in the industry can offer a proper streaming service.
Score: 6 Votes (Like | Disagree)
maflynn Avatar
52 months ago
With 20 billion in debt and they're burning through cash like its going out of style, they will be facing a reckoning.
Score: 5 Votes (Like | Disagree)
ILikeAllOS Avatar
52 months ago
Meanwhile Apple recently announced that they're spending just one billion dollars to compete with Netflix and everybody else? :eek:
Score: 3 Votes (Like | Disagree)
headlessmike Avatar
52 months ago
I would pay a lot of money to have a streaming service based on iTunes' movie library. All this original content crap is just a content filler because no one in the industry can offer a proper streaming service.
So would I!

I cancelled my Netflix subscription because I got tired of all of the original content. I had originally signed up for all of the content from different networks, but at least in Europe much of that has disappeared (or simply not been updated) in recent years while they have been pushing their own content (which I don't care about).
Score: 3 Votes (Like | Disagree)
Jsameds Avatar
52 months ago
Meanwhile Apple recently announced that they're spending just one billion dollars to compete with Netflix and everybody else? :eek:
Netflix spent $120m on original content in their first year.

Now Apple is spending more than 8x that figure and some think it's not enough or something? Weird.
Score: 3 Votes (Like | Disagree)
maflynn Avatar
52 months ago
Doubtful. At least not anytime in the next 20 years. By which time they will be profitable.
They don't have 20 years, if they keep piling on the debt.
[doublepost=1502972405][/doublepost]
Netflix is 20b in debt? Not really in the mood to look it up but if so that's crazy!
Netflix is on the hook for $20 billion. Can it keep spending its way to success? ('https://forums.macrumors.com/threads/netflix-to-spend-7-billion-on-original-programming-next-year.2062251/#post-24905842')


But some industry experts are warning of a Netflix bubble that may burst if the company fails to produce enough hit series to keep attracting new subscribers.

“Nobody is ever the dominant player forever,” said Mike Vorhaus, president of Magid Advisors, a media and digital video consultancy. “I think they're going to need some luck in not drowning in debt in the ultimate slowdown of growth.”
Score: 3 Votes (Like | Disagree)

Top Stories

REC ASA CODE2016 20160601 205816 2745

Elon Musk Reportedly Demanded to Become Apple CEO as Part of Potential Tesla Acquisition [Update: Musk Denies]

Friday July 30, 2021 9:04 am PDT by
Tesla CEO Elon Musk reportedly once demanded that he be made Apple CEO in a brief discussion of a potential acquisition with Apple's current CEO, Tim Cook. The claim comes in a new book titled "Power Play: Tesla, Elon Musk and the Bet of the Century," as reviewed by The Los Angeles Times. According to the book, during a 2016 phone call between Musk and Cook that touched on the possibility of ...
General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...
a15 chip

iPhone 13 and Redesigned MacBook Pro Chip Production Hit With Gas Contamination

Friday July 30, 2021 5:44 am PDT by
The most important TSMC factory that manufactures Apple's chips destined for next-generation iPhone and Mac models has been hit by a gas contamination, according to Nikkei Asia. The factory, known as "Fab 18," is TSMC's most advanced chipmaking facility. TSMC is Apple's sole chip supplier, making all of the processors used in every Apple device with a custom silicon chip. Industry...
Apple watch series 5 new case material made of titanium 091019

Titanium Apple Watch Series 6 Models Currently Widely Unavailable

Sunday August 1, 2021 6:21 am PDT by
Models of the Apple Watch Series 6 with titanium cases part of the "Apple Watch Edition" collection is currently widely unavailable for pick-up in several of Apple's retail stores in the United States and is unavailable entirely for delivery in major markets. Noted by Bloomberg's Mark Gurman in the latest edition of his "Power On" newsletter, titanium models of the Apple Watch Series 6,...
iPhone 13 Always On Feature

iPhone 13 to Bring Over a Major Feature From the Apple Watch

Wednesday July 28, 2021 2:21 am PDT by
Apple's upcoming iPhone 13 lineup will feature an always-on display akin to the Apple Watch Series 5 and Series 6, according to recent reports. In his weekly Power On newsletter, Bloomberg journalist Mark Gurman, who often reveals accurate insights into Apple's plans, said that the iPhone 13 may feature an Apple Watch-inspired always-on mode. The Apple Watch Series 5 and Apple Watch...
apple rtp land

Apple Preparing to Occupy 200,000 Square Feet of Temporary Space Ahead of New $1 Billion North Carolina Campus

Thursday July 29, 2021 9:14 am PDT by
Back in April, Apple announced a $430 billion investment over the next five years to create more than 20,000 new jobs as the company continues to expand. One significant piece of that plan is a new engineering and research center in North Carolina where Apple will be investing over $1 billion and hiring at least 3,000 employees. Assemblage of seven properties in Research Triangle Park owned by ...
telegram

Bumper Telegram Update Enables Video Calls With Up to 1,000 Viewers

Saturday July 31, 2021 12:13 am PDT by
Telegram Messenger has received a major update to its video capabilities, including support for video calls with up to 1,000 viewers. Group video calls in Telegram allow up to 30 users to stream video from both their camera and their screen, and now a maximum of 1,000 people can tune into the broadcast. Telegram says it intends to continue increasing this limit "until all humans on Earth...
app store blue banner

Elon Musk: Apple's App Store Fees Are a 'De Facto Global Tax on the Internet'

Friday July 30, 2021 10:04 am PDT by
Tesla CEO Elon Musk took to Twitter today to criticize Apple's App Store fees in a tweet that sides with Epic in the ongoing Epic v. Apple dispute. "Epic is right," wrote Musk, before going on to call Apple's App Store fees a "de facto global tax on the Internet." Musk earlier this week made veiled comments about App Store fees, but today's statement is a much more direct criticism....
FaceID iMac REREREREMIX

Top Stories: Face ID on Future Macs, Elon Musk Criticizes Apple, and More

Saturday July 31, 2021 6:00 am PDT by
This week saw an interesting range of Apple news and rumors, including a blockbuster earnings report, rumors about next year's "iPhone 14" and Face ID coming to Macs, and more. Subscribe to the MacRumors YouTube channel for more videos. Other popular topics included Apple's crackdown on leaks, changes in the latest round of betas for iOS 15, iPadOS 15, and macOS Monterey, and several stories...
duracell battery bitter coating

Apple Says Don't Buy AirTag Replacement Batteries With Bitter Coating

Wednesday July 28, 2021 11:08 am PDT by
Since AirTags were just released earlier this year and are expected to have a year-long battery life, it may be some time yet before AirTag users need a replacement battery, but when the time comes for a refresh, Apple is warning customers not to buy batteries with a bitter coating. AirTags use coin-shaped CR2032 batteries, which happen to be a size that's easy to swallow. Some battery...