The competition is spending for content: Netflix
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Posted On: 10/17/2017 1:59:23 AM
The competition is spending for content:
Netflix will spend between $7 billion and $8 billion on content in 2018, up from the roughly $6 billion it will spend this year, the streaming service said while announcing its third-quarter earnings on Monday.
Netflix added 5.3 million subscribers in the quarter, surpassing expectations, and had revenue of nearly $3 billion, a 30 percent increase from the same period last year. The company also saw its net income rise to $130 million, well over last year’s third quarter total of $52 million but short of the $143 million that Wall Street expected.
In after-hours trading, Netflix’s shares inched up 1.2 percent, just days after its stock surpassed $200 for the first time.
Netflix now has 104 million paid subscribers, and saw the bulk of its third-quarter growth come from international markets, which accounted for 4.5 million of its new subscriptions.
The company said that 25 percent of its total content spending was now dedicated to original programming, and that it expected that figure to grow. Netflix already outspends its rivals, including HBO, FX and CBS, while Apple has recently signaled to Hollywood it would spend more than $1 billion on original content.
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Netflix will spend between $7 billion and $8 billion on content in 2018, up from the roughly $6 billion it will spend this year, the streaming service said while announcing its third-quarter earnings on Monday.
Netflix added 5.3 million subscribers in the quarter, surpassing expectations, and had revenue of nearly $3 billion, a 30 percent increase from the same period last year. The company also saw its net income rise to $130 million, well over last year’s third quarter total of $52 million but short of the $143 million that Wall Street expected.
In after-hours trading, Netflix’s shares inched up 1.2 percent, just days after its stock surpassed $200 for the first time.
Netflix now has 104 million paid subscribers, and saw the bulk of its third-quarter growth come from international markets, which accounted for 4.5 million of its new subscriptions.
The company said that 25 percent of its total content spending was now dedicated to original programming, and that it expected that figure to grow. Netflix already outspends its rivals, including HBO, FX and CBS, while Apple has recently signaled to Hollywood it would spend more than $1 billion on original content.
Continue reading the main story
Related Coverage
Netflix Is Increasing Its Monthly Subscription Cost OCT. 5, 2017
Netflix Signs Shonda Rhimes in Counterpunch to ABC and Disney AUG. 14, 2017
With Disney’s Move to Streaming, a New Era Begins AUG. 9, 2017
How Disney Wants to Take On Netflix With Its Own Streaming Services AUG. 8, 2017
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