Netflix likely to spend 5 Billion on content next year
Bloomberg business ran with an article about Netflix starting a financial spending spree on original content versus some other networks. Fast Company has also ran a article but cites getting its information from Bloomberg. Netflix is expected to spend close to 4.97 billion, Time Warner 4.56 billion (also inclusive of HBO), Fox 3.83 billion, Viacom 3.82 billion, Disney 2.88 billion and discovery at 2 billion. While that is great for investors its a little bit of an issue for investors of those companies. The article doesn’t mention the amount spent by Amazon or Hulu but it does mention that they are spending heavily. With Netflix, Amazon and Hulu producing original content (Thats also being nominated and winning awards) they are forcing traditional media companies to make new content when a large portion of content could be reruns of shows. With the OTT providers such as Netflix, Amazon and Hulu creating original/award winning content they are going to be not only applying more pressure on traditional networks but making cutting the cord more appealing for your average consumer and providing more content to those that young adults that are looking at saving money and not interested in paying the usually high prices associated with cable or satellite television.