Netflix announced on Monday it would spend as much as $8 billion on content one year from now to keep developing its mammoth supporter base and outpace its rivals.
On a video call with investigators recently Chief Content Officer Ted Sarandos said a sizable piece of that $8 billion will go towards creating 30 new anime series and 80 new unique movies, all slated for release in 2018. The company announced its third quarter numbers included 4.45 million subscribers abroad and 850,000 in the United States, amid the three months that finished Sept. 30, for an aggregate of 109.3 million clients around the globe.
“The range anywhere from a million-dollar Sundance, all the way up to something on a much larger scale,” Sarandos said.
The organization is confronting new rivalries in the video medium, like TV networks launching their own apps. Disney is taking its content from Netflix to its own direct-to-customer video programming, and more organizations are hustling into the space with their checkbooks. Netflix CEO Reed Hastings noted, “The streamer has only carried Disney Content in Australia, The Netherlands and Canada. Although Disney’s got an enormously significant brand, we have done very well internationally without it”.
“There’s no timing correlation between our intent to grow content spending and the price increases. This has been planned for a long time. It’s really about slow and steady. We’ve been in no hurry. Many investors have sort of criticized us in the past for being under-priced.” said CFO David Wells. “We have a good head start, but our job is to improve Netflix as rapidly as possible, to stay ahead of the competition in the decades to come.”
“Our future largely lies in exclusive original content that drives both excitement around Netflix and enormous viewing satisfaction for our global membership and its wide variety of tastes,” the investor letter said.
It said investment in Netflix originals is more than a quarter of its total content budget in 2017 and will continue to grow. Netflix said this month that it plans to raise its $9.99-a-month two-stream high definition plan for new subscribers by $1.