Netflix to Spend $7 Billion on Original Programming Next Year

by

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
45 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
45 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
45 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
45 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
45 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
45 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

16inchmacbookpromain

Kuo: New MacBook Pro Models to Feature Flat-Edged Design, MagSafe, No Touch Bar and More Ports

Thursday January 14, 2021 9:32 pm PST by
Apple is working on two new MacBook Pro models that will feature significant design changes, well-respected Apple analyst Ming-Chi Kuo said today in a note to investors that was obtained by MacRumors. According to Kuo, Apple is developing two models in 14 and 16-inch size options. The new MacBook Pro machines will feature a flat-edged design, which Kuo describes as "similar to the iPhone 12" ...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
prototype iphone 12 pro

Prototype iPhone 12 Pro Shown Off in Photos

Wednesday January 13, 2021 3:39 pm PST by
Developer Giulio Zompetti, who often shows off prototype versions of Apple devices, today highlighted a prototype version of the iPhone 12 Pro. The iPhone 12 Pro is running an operating system called SwitchBoard, a nonUI version of the iOS 14 update that Apple uses internally. We've seen SwitchBoard on prototype devices before, as Apple uses it to test new features. Zompetti's prototype...
foldable iPhone concept feature

Apple Testing In-Display Fingerprint Sensor for iPhone 13, Foldable iPhone Also in the Works

Friday January 15, 2021 1:46 pm PST by
Apple has started "early work" on an iPhone that has a foldable display, according to a new report from Bloomberg's Mark Gurman. Though testing of a foldable iPhone has begun, Apple has not committed to releasing a device that has a foldable display. Development has not yet expanded beyond a display and Apple does not have full foldable iPhone prototypes in its labs. Like foldable...
Apple TV Ray Light 2 Triad

Apple Extends Free Apple TV+ Trials Until July

Friday January 15, 2021 10:50 am PST by
Apple is once again planning to extend its free Apple TV+ trial subscriptions, this time until July. When Apple TV+ launched in November 2019, Apple offered free Apple TV+ subscriptions to those who purchased a new Apple device in or after September 2019. Those free subscriptions were set to expire in November 2020, but in October 2020, Apple announced that it was extending free trials...
macbook pro 16 inch thunderbolt

Bloomberg: Next-Generation MacBook Pro to Offer Improved Displays, Faster Charging Over MagSafe

Thursday January 14, 2021 11:36 pm PST by
Following today's report from analyst Ming-Chi Kuo outlining major changes for the next-generation MacBook Pro models coming in the third quarter of this year, Bloomberg's Mark Gurman has weighed in with his own report corroborating some of the details but seemingly differing a bit on others. First, Gurman shares more details on the return of MagSafe charging to the MacBook Pro, indicating...
Hue module dimmer switch

Philips Hue Announces New Wall Switch Module, Dimmer Switch, and Outdoor Light Bar

Thursday January 14, 2021 3:11 am PST by
Philips Hue has announced a new wireless dimmer switch module that lets Hue bridge owners directly control the smart lighting from their standard wall switches. The new Philips Hue wall switch module is the ideal addition to any Philips Hue set up. Installed behind existing light switches, it allows users to turn their existing switch into a smart switch and ensures their smart lighting is...
pat gelsinger intel

Incoming Intel CEO Derides Company's Inability to 'Deliver Better Products' Than Apple's M1 Chip

Friday January 15, 2021 6:17 am PST by
Incoming Intel CEO Pat Gelsinger has said that the company must "deliver better products" than Apple, which he described as a "lifestyle company," and says that Intel's best days are "in front of it" (via The Oregonian). Speaking at an Intel all-hands meeting yesterday, Gelsinger derisively implied that Apple is merely a "lifestyle company," so Intel must be able to surpass its technology: ...
mac pro mini feature

Apple Working on Two New Mac Pro Desktops, One of Which Will Be Reminiscent of Power Mac G4 Cube

Friday January 15, 2021 10:23 am PST by
Apple is developing two versions of the Mac Pro to succeed the Mac Pro that was first released in December 2019, according to a new report from Bloomberg. The first updated Mac Pro is a direct successor to the current Mac Pro and it will use the same design. It may also be equipped with Intel processors rather than Apple silicon chips, and it could be one of the sole machines in the Mac...
pioneer carplay wc5700nex

The Best Apple-Related Accessories at CES 2021

Wednesday January 13, 2021 1:16 pm PST by
CES 2021 is taking place digitally this year, and it hasn't been as exciting as in past years because many vendors have opted out. That said, some companies are still showing off some interesting Apple-related accessories that are coming out this year and that will be of interest to Mac, iPad, and iPhone users. Subscribe to the MacRumors YouTube channel for more videos. Pioneer Wireless...