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Netflix (NASDAQ:NFLX) will continue to spend big on content creation even as profits fall, with budgets to reach $5 billion by next year, Diginomica reported. The company added 3.28 million streaming subscribers over the previous quarter, but profits fell 63 percent.
Netflix (NASDAQ:NFLX) will continue to spend big on content creation even as profits fall, with budgets to reach $5 billion by next year, Diginomica reported. The company added 3.28 million streaming subscribers over the previous quarter, but profits fell 63 percent.
As quoted in the publication:
Nonetheless the firm remains determined to expand its service to 200 countries by the end of next year, with Japan, Portugal, Italy and Spain slated to join later this year.
It’s also going to keep on spending on original content with budget there reaching $5 billion in 2016 and a further $1 billion allocated for marketing.
This has to be done to prevent traditional TV networks from making the move across onto internet service delivery. Or as Chief Content Officer Ted Sarandos puts it, Netflix has to become HBO before HBO can become Netflix.