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Netflix to allocate 85% of new spending on original TV shows

16 Мая 2018

While we all love the rise of streaming services for giving us a place to remember how much we love shows that are no longer on the air, Netflix has been creating some truly awesome original shows and movies.

Sarandos estimates 85% of the company's total spending globally is now on new shows and movies, with 470 originals scheduled to premiere by end of the year. Aside from classics, Netflix has made bank by introducing their own original content. Programs such as Strangers Things, Bright, Orange is the New Black, Narcos, Master of None and more are all helmed by Netflix itself. While speaking at the MoffettNathanson's Media & Communications Summit 2018 Chief content officer Ted Sarandos confirmed the news and also told the press that more than 90 per cent of its consumers regularly watch original content, according to a report by Variety. This will bring the total number of originals to around 1,000. The other main method for Netflix to pay the bills is through those monthly subscription fees paid by its members. But prices do eventually go up, and for a company like Netflix, finding that maximum price customers are willing to pay for something is always a mix of science and guesswork.

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In a research note Tuesday, Olson said his survey results suggest that two-third of Netflix's USA subscribers would stick with the service even if it raised prices to $15 a month or more. "The creators we're talking to, they watch Netflix and they want to be on our network". (Piper Jaffray conducted a similar survey of Netflix subscribers in 2016).

Part of the context here is that numerous studios that have sold their content to Netflix in the past are now either saving it for their own streaming services or looking to raise the prices.

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Netflix to allocate 85% of new spending on original TV shows