Published on October 20th, 2017 | by Brad Gibson3
Netflix: Content will be 50% original programs by 2018
Netflix has announced that by 2018 50 percent of their TV shows and movies will be original content. To reach this goal, Netflix plans to spend $7 to $8 billion on new content next year, the company said.
Following the company’s third-quarter earnings announcement, Netflix Chief Content Officer Ted Sarandos told reporters that a sizable chunk of that $8 billion will go toward producing 30 new anime series and 80 new original films, all slated for release in 2018.
“Our investment in Netflix originals is over a quarter of our total P&L content budget in 2017 and will continue to grow,” Sarandos said. “With $17 billion in content commitments over the next several years and a growing library of owned content ($2.5 billion net book value at the end of the quarter), we remain quite comfortable with our ability to please our members around the world.”
The announcement of new, exclusive content comes as Netflix openly admitted in their earnings report that it must create a lot more of its future content as FOX prepares to move its content to HULU and Disney plans to pull their new movies from Netflix starting in 2018.
The spending announcement on new content better explains the recent news that Netflix would be increasing its subscription prices for the first time in two years to cover much of the cost of the new, future programming. The company announced October 5th it would be increasing rates by $1 to $10.99 a month. The premium plan — which allows customers to use the same account for four screens at once — will increase by $2 to $13.99 a month. The basic streaming plan, which allows for streaming on only one screen at a time, will remain at $7.99 a month.