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Last year 's $ 12 billion looks like a radical change.
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As you probably know, Netflix has a library of movies and television series that are constantly expanding. "Fyre: The Biggest Party That Never Happened", "Black Mirror: Bandersnatch" and "Tidying Up with Marie Kondo" are just some of the topics of conversation that opened the first of the streaming giant in recent weeks. They have one thing in common: They all cost money to acquire and / or produce. In fact, Netflix has spent $ 12 billion in content in 2018 and, according to Wall Street badysts (according to Variety), this figure could reach $ 15 billion this year.
"We believe [Netflix] could, if he wanted to, increase his margins faster by limiting the growth of his substantial investments in global marketing and production, but he (judiciously) plays on the long game, "writes Morgan Stanley's Ben Swinburne. The company spent $ 8.9 billion on content in 2017 and, according to Daniel Salmon of BMO Capital Markets, would spend up to $ 17.8 billion in 2020.
"The more you invest, the more people find the content they like and the more value they have in the service," Netflix CEO Reed Hastings said in an investor interview Thursday. . Netflix spends essentially money to make money, especially with competing services from Disney and others to come.
Upcoming originals include "The Umbrella Academy", "Velvet Buzzsaw" and "High Flying Bird", all of which are expected to be released in the coming months. With Sundance starting next week, Netflix will certainly add more movies to its library before the end of the festival.
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