Netflix to spend more on content
NEW YORK: Netflix Inc expects to spend a $15 billion on programming this year, dwarfing its streaming rivals. But it’s just getting started.
Chief executive Reed Hastings said at the DealBook conference on Wednesday that the company’s expenditures on shows and movies would only grow.
“We plan on taking spend up quite a bit,” he said at the New York event. “We’re growing and investing around the world. We’ve been strong in series. Now we’re getting really strong in movies.”
The remarks show how competitive the streaming industry is becoming, with media giants all diving into the market with their own services. They’re locked in an arms race to offer the most compelling content — and it’s not cheap.
AT&T Inc will be offering 10,000 hours of programming with its HBO Max platform, due next year. It expects to spend $4 billion on the service, which won’t be profitable until 2025.
A new Walt Disney Co service due this month will feature dozens of new original programs, on top of the hundreds of titles in the company’s library. And Apple Inc is spending billions of dollars just on new series for its service, Apple TV+, which rolled out last week.
Netflix remains the industry leader, but it’s facing more pressure than ever before. Hastings said he expected to learn a thing or two from his rivals.
“We admire the heck out out of Disney,’’ he said. “They’re the one we have the most to learn from.”
Netflix has come under fire from Hollywood traditionalists for not respecting the industry’s theatrical windows — the timeframe when a movie plays at cinemas before going to home video.
Hastings said he expected such windows to disappear altogether. “Theaters will be like restaurants: A going-out experience.”
“There’s also plenty of room for Netflix to expand into new categories,’’ Hastings said.
“A big thrust for us is animated and next year we’ve got the beginnings of a great animation slate, so we’re investing heavily there,” he said. “Unscripted — we’re doing more and more. So we’ve got a long way to go, especially on a global basis.”