Netflix to spend USD 7 billion on content in 2018

Ted-Sarandos

Netflix Chief Content Officer Ted Sarandos said in an interview with Variety that in 2018 the company will spend USD 7 billion in content, up from USD 6 billion in this year’s budget.

In the interview, the executive referred to Disney’s decision to remove its films and TV shows from Netflix in order to launch a direct-to-consumer streaming platform. Sarandos downplayed the impact of this move. “Everyone is doing some version of it already,” he said. “They just have to make a decision for their companies, their brands and their shareholders on how to best optimize the content.” In this context, Sarandos said that they are prepared for this change. “We started making original content five years ago, betting this would happen.”

The vast majority is still licensed content. The executive said that they are “still a couple years from seeing it go 50-50.”

In this context, the manager again emphasized the importance of the originals. “The more successful we get, the more anxious I get about the willingness of the networks to license their stuff to us,” he says.

At the end of Q217, Netflix reported 104 million members worldwide. Recently the company announced the acquisition of comic book publisher Millarworld as well as the return of David Letterman to television for a new series for the streaming giant and the arrival of Shonda Rhimes, the creator of hit series such as “Gray’s Anatomy” and “Scandal”.