Netflix keeps on growing, bumps budget for original programming - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

Netflix keeps on growing, bumps budget for original programming to $8 billion

Updated:
© Digital Trends © Digital Trends


By 


Provided by

The house (not House of Cards) that Netflix built has more competition than ever, but a recent earnings report shows that the company is very much dominating the streaming TV game, and could wind up spending $8 billion on original programming next year.

The Los Gatos, California-based company impressed at this year’s Emmy Awards, earning 91 nominations and taking home 20 trophies. Over the past five years, Netflix has successfully transitioned from a content distributor to a content producer, and now boasts a massive stable of popular original programming. Based on its quarterly earnings report, Netflix is actually growing faster than expected, and has increased its estimated budget for new content in 2018 by roughly $1 billion.

In August, we reported that Apple was planning to spend $1 billion on original content over the next year. While this might sound like a lot, it actually pales in comparison to the $2 billion and $4.5 billion spending estimates for Amazon and HBO, respectively. And, though that might sound like a lot, Netflix was planning to spend around $7 billion in 2018 before bumping that number up to $8 million.

Perhaps this is why Netflix is raising its prices in the U.S., a move that will surely grind the gears of many domestic subscribers. The international market represents Netflix’s best opportunity for projectable growth, so it makes sense that the service would increase spending on original content targeted outside America (like the acclaimed 3%, a Brazilian production).

An official statement in the release seems to back up this idea: “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.” In the third quarter of 2017, Netflix added 5.3 million new subscribers — 850,000 in the U.S., and 4.45 million international subscribers. According to the earnings report, those numbers are expected to rise in the fourth quarter, to a total of 6.3 million.

Netflix’s stock value has risen over the past year with impressive regularity (see this chart), reaching more than $202 per share as of today. Wall Street estimates had adjusted earnings pegged at 32 cents per share, but the actual number ended up at 37 cents per share.

This article was originally posted on Digital Trends

Content provided by
INFORMATIONAL DISCLAIMER The information contained on or provided through this site is intended for general consumer understanding and education only and is not intended to be and is not a substitute for professional financial or accounting advice. Always seek the advice of your accountant or other qualified personal finance advisor for answers to any related questions you may have. Use of this site and any information contained on or provided through this site is at your own risk and any information contained on or provided through this site is provided on an "as is" basis without any representations or warranties.
  • Entertainment NewsEntertainment NewsMore>>

  • Netflix misses subscriber growth forecast by 1 million, shares down 11%

    Netflix shares down 14% on missed subscriber growth in second quarter

    Monday, July 16 2018 4:59 PM EDT2018-07-16 20:59:08 GMT
    Jul 17, 2018 6:44 AM2018-07-17 10:44:00 GMT

    Netflix may be the home of a roster of superhuman Marvel characters, but the company itself is only as good as its human users -- the streaming video leader saw its stock plummet after falling short of its expected subscriber additions in the second quarter of 2018.

     

    Netflix may be the home of a roster of superhuman Marvel characters, but the company itself is only as good as its human users -- the streaming video leader saw its stock plummet after falling short of its expected subscriber additions in the second quarter of 2018.

     
  • Statelessness a hurdle for some boys rescued from Thai cave

    Statelessness a hurdle for some boys rescued from Thai cave

    Monday, July 16 2018 9:40 AM EDT2018-07-16 13:40:00 GMT
    Tuesday, July 17 2018 3:17 AM EDT2018-07-17 07:17:57 GMT
    (AP Photo/Vincent Thian). In this July 15, 2018, photo, the coach of one of Thailand's Wild Boars soccer teams, Nopparat Kanthawong, right, watches his team play in Mae Sai district in Chiang Rai province, northern Thailand. At least 3 of the 12 boys a...(AP Photo/Vincent Thian). In this July 15, 2018, photo, the coach of one of Thailand's Wild Boars soccer teams, Nopparat Kanthawong, right, watches his team play in Mae Sai district in Chiang Rai province, northern Thailand. At least 3 of the 12 boys a...
    The 12 boys and coach of the Wild Boars youth soccer team who were rescued from a cave in northern Thailand last are a multi-ethnic, cross-border crew, but some of them cannot even count on a permanent home because... 
    The 12 boys and coach of the Wild Boars youth soccer team who were rescued from a cave in northern Thailand last are a multi-ethnic, cross-border crew, but some of them cannot even count on a permanent home because they are stateless. 
  • Prime Day lands Amazon in dog house as site crashes

    Prime Day lands Amazon in dog house as site crashes

    Monday, July 16 2018 3:59 PM EDT2018-07-16 19:59:19 GMT
    Jul 16, 2018 5:40 PM2018-07-16 21:40:00 GMT

    Well Amazon Prime Day got off to a "ruff" start Monday afternoon, so they brought in some good boys to calm down customers who were barking mad.

     
    Well Amazon Prime Day got off to a "ruff" start Monday afternoon, so they brought in some good boys to calm down customers who were barking mad.  
Powered by Frankly
All content © Copyright 2000 - 2018 Midwest Television, Inc. All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.