INQUIRER.net stock photo.
Online streaming service Netflix has planned to spend $8 billion next year to supply its library with all-original content by at least 50 percent.
As reflected in its third quarter earnings report, the company has $2.5 billion in value of allotted content, such as the gritty series “Narcos”, the adaptation of the Japanese manga “Death Note”, and Marvel’s ‘The Defenders”. It also has set aside $17 billion to further supply its library with content.
“Our future largely lies in exclusive original content that drives both excitement around Netflix and enormous viewing satisfaction for our global membership and its wide variety of tastes,” the statement read. The plan was to release 30 new anime series and 50 original films, according to a previous report from The Verge.
Meanwhile, free cash flow for the quarter was at $465 million, down from $608 million from the previous four months. For global streaming revenue, it rose by 33 percent from an increase in average paid membership. However, 35.8 percent was tallied for domestic contribution margin, down from 36.4 percent of last year.
With competition heading its way, such as Disney being in talks of setting up its own streaming service, Netflix chief content officer Ted Sarandos said in a video conference posted on Youtube that such an event will be good. He pointed out that competition would prompt Netflix to be more creative.
“We just have to focus on creating content that our members can’t live without and get pretty excited about every month,” Sarandos said.
“We’re thrilled that more people are doing it. I think it’s great for innovation, it’s great for consumers that have a lot of choice, and we just have to be the best choice out there,” he added.
To better cater to audiences, the streaming site has partnered with mobile telecommunications company T-mobile and added the telecom’s services into its family bundle plan in the United States. The same deal was made with SLR/Altice in France. Katrina Hallare/JB
RELATED STORY:
WATCH: Joan Didion documentary coming in Netflix