Netflix Ramps up Spending to Make Its Library 50% Original by 2018
According to their third-quarter earnings call last week, Netflix is planning to spend $8 billion on original content for 2018, part of their plan to achieve a library of 50 percent original content. Netflix recently completed a $1.6 billion bond offering to raise additional cash for new content, despite growing concerns about their $15 billion in liabilities.
A large portion of the $8 billion will go toward 30 original anime series and 80 movies. According to The Verge, the ambitious number of new anime series may be an attempt to draw younger audiences away from illegal streaming and Crunchyroll.
The massive push for original feature-length movies may be a response to Amazon winning three Oscars compared to Netflix’s one last year. Subscriber growth continues to favor Netflix, despite their recent price hike and Hulu’s recent price cuts.
Netflix’s decision to build its own original content library comes as Disney and other major networks increasingly try and close-off their content ecosystems. Netflix CEO Reed Hastings has noticed, “The long-term trends are clear. Our future largely lies in exclusive original content.”