As per a new estimate from BMO Capital Markets, Netflix will funnel $17.3 billion into original content production in 2020. That’s a full $2 billion more than the amount it spent in 2019 that was $15.3 billion.
2019 turned out some great entertainment including The Irishman, The Witcher and Russian Doll as well as new seasons of Black Mirror and Stranger Things, just to name a few.
The streaming giant spent $13 billion in 2018. The spending on content has risen year after year as it’s popularity and consumption soars.
A new forecast predicts the company is on track to spend $26 billion by 2028.
Disney has said it will spend $1 billion on original programming for Disney Plus in 2020. HBO Max will reportedly see investments of $2 billion in the coming year. And Apple TV+ saw a $6 billion investment in content in its first year.
Cowen & Co. analyst John Blackledge told Variety that they continued to believe Netflix would hit or exceed it’s U.S paid net add guide.
Netflix is counting on the unique lineup of award-winning TV shows and movies that it has amassed since expanding into original programming six years ago to help it retain its competitive edge and attract more subscribers.
A major advantage taken by Netflix was its head start in video streaming to track the viewing interests 158 million subscribers around the world, giving it valuable insights into the kind of programming that is most likely to appeal to wide swaths of its audience.
But, it is likely to lose its subscribers after tempting offers by Apple, for new buyers of iphone, ipad or mac, to get an year of free subscription, as well as heavy promotion by Disney in classic programmes.