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>>

  • Investigation says Prince was isolated, addicted and in pain

    Investigation says Prince was isolated, addicted and in pain

    Friday, April 20 2018 10:17 PM EDT2018-04-21 02:17:38 GMT
    (Carver County Sheriff's Office via AP). In this image made from surveillance video provided Thursday, April 19, 2018, by the Carver County Sheriff's Office, as part of an investigative file into Prince's death, the superstar, center, enters a clinic o...(Carver County Sheriff's Office via AP). In this image made from surveillance video provided Thursday, April 19, 2018, by the Carver County Sheriff's Office, as part of an investigative file into Prince's death, the superstar, center, enters a clinic o...
    Investigative files in Prince's death show that members of his inner circle were growing increasingly alarmed about an opioid addition as his health waned in the final days of his life, and that they sought help. 
    Investigative files in Prince's death show that members of his inner circle were growing increasingly alarmed about an opioid addition as his health waned in the final days of his life, and that they sought help. 
  • Chris Borland quit NFL, now helps those in retirement

    Chris Borland quit NFL, now helps those in retirement

    Friday, April 20 2018 10:05 PM EDT2018-04-21 02:05:05 GMT
    (Rich Saal/The State Journal-Register via AP, File). FILE - In this March 1, 2018, file photo, Chris Borland, a former NFL linebacker and Big Ten Defensive Player of the Year at Wisconsin, testifies before the Illinois House Mental Health Committee hea...(Rich Saal/The State Journal-Register via AP, File). FILE - In this March 1, 2018, file photo, Chris Borland, a former NFL linebacker and Big Ten Defensive Player of the Year at Wisconsin, testifies before the Illinois House Mental Health Committee hea...
    Chris Borland knows all about the challenges of early retirement, having stepped away from a promising football career after one year because of concerns over head injuries. 
    Chris Borland knows all about the challenges of early retirement, having stepped away from a promising football career after one year because of concerns over head injuries. 
  • Amazon's reveals its Prime service has 100 million members

    Amazon's reveals its Prime service has 100 million members

    Friday, April 20 2018 9:19 PM EDT2018-04-21 01:19:25 GMT
    (AP Photo/Reed Saxon, File). FILE - This Sept. 6, 2012, file photo shows the Amazon logo in Santa Monica, Calif. Amazon said Wednesday, April 18, 2018, it has more than 100 million paid Prime members, the first time the company has given out a specific...(AP Photo/Reed Saxon, File). FILE - This Sept. 6, 2012, file photo shows the Amazon logo in Santa Monica, Calif. Amazon said Wednesday, April 18, 2018, it has more than 100 million paid Prime members, the first time the company has given out a specific...
    Amazon has persuaded more than 100 million shoppers to subscribe to its Prime service as its empire and ambitions expand. 
    Amazon has persuaded more than 100 million shoppers to subscribe to its Prime service as its empire and ambitions expand. 
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.