Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Politics News

Netflix is projected to spend $19 Billion on video content in 2021

by
December 29, 2020
in Politics News
0
Netflix is projected to spend $19 Billion on video content in 2021
0
SHARES
10
VIEWS
Share on FacebookShare on Twitter

Netflix

As the streaming competition continues to shape up, Netflix has turned the focus on bettering its video content library to remain on top. As a result, Netflix has been increasing its video content budget annually.

Data presented by Bankr estimates that Netflix will spend about $19.03 billion on video content in 2021. The amount will be an increase of about 10% from $17.3 billion spent in 2020. Since spending $2.4 billion in 2013, the streaming giant has been increasing its video content budget yearly.

The research also overviewed the number of Netflix paid subscribers globally from 2011 Q3 to Q3 2020. Over the period, the subscribers have grown by a staggering 807.67%. As of Q3 2011, the figure stood at 21.5 million while in 2020, the number is at 195.15 million.

Why Netflix will increase video content budget in 2021

The projection is attributed to factors like the company’s focus to produce more original video content as detailed in the investor letter for the 2020 Q3. Producing Netflix originals requires more cash upfront. Over the years, Netflix routinely raises debt to fuel content spending on originals. Since Netflix launched its first original series in 2013, the streaming service has put its original content front and center with significant budget allocation.

Furthermore, the company is reportedly lining up a higher budget on originals from the Asian market. After successfully producing shows like the Korean zombie period thriller “Kingdom” and reality series “Indian Matchmaking,” Netflix seeks to make a mark in a region and match up the competition. Notably, the region is witnessing a growth in subscribers.

The projection is also based on the fact that Netflix has been recording an increasing number of paid subscribers every quarter. Additionally, the firm onboarded more users during the pandemic hence the need to retain the subscribers. With the subscriber growth likely to continue
Netflix can take additional revenue and expand its content budget even more. Therefore, the more Netflix can reinvest in original shows and movies, the more it retains current users and attracts new paid subscribers. Netflix also has a history of growing its video content budget in a declining trend yearly.

Additionally, Netflix has been witnessing a peak in cash burns. Proceeds from the cash burns area are channeled to original content spending. The proceeds are also used in investments, working capital, and potential acquisitions and strategic transactions.

Netflix is yet to announce how it spent the video content budget allocated for 2021. It is worth noting that the company halted production early this year due to the pandemic as lockdowns were imposed to manage the virus. The company, therefore, focused on buying content from other production houses. In the event the firm did not spend the entire budget, it might be rolled over to 2021.

Streaming competition grows significantly

The estimate comes as streaming competition continues to heat up. Hence, Netflix is witnessing stiff competition from Disney+ and Apple TV+. However, Netflix continues to have an advantage regarding its content. The firm can produce programming on a global basis. Recently, the streaming giant has seen an increase in content from other regions like Asia and Africa. It continues to outshine other players who are currently more focused on Hollywood titles.

Overall, Netflix needs a lot of video content to remain competitive. However, the shows need to retain subscribers especially those onboarded during the pandemic. If the subscriber growth slows down, Netflix might need to look for other ways to attract more users.

Read more:
Netflix is projected to spend $19 Billion on video content in 2021

ShareTweetPin

Related Posts

Previse raises $18M funding to accelerate SME working capital finance transformation
Politics News

Previse raises $18M funding to accelerate SME working capital finance transformation

May 24, 2022
UK borrowing falls in April as inflation raises debt costs
Politics News

UK borrowing falls in April as inflation raises debt costs

May 24, 2022
MPs pocket £13m from ‘second jobs’ with Theresa May and Sajid Javid leading the pack
Politics News

MPs pocket £13m from ‘second jobs’ with Theresa May and Sajid Javid leading the pack

May 24, 2022
London retains crown as Europe’s technology hub
Politics News

London retains crown as Europe’s technology hub

May 24, 2022
One in five employees expect to change jobs this year
Politics News

One in five employees expect to change jobs this year

May 24, 2022
Van owners discouraged from going electric due to lack of charging points
Politics News

Van owners discouraged from going electric due to lack of charging points

May 24, 2022
Next Post
Boris Johnson under pressure to delay school reopenings

Boris Johnson under pressure to delay school reopenings

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

Local gov’t units face fiscal stress

Local gov’t units face fiscal stress

September 21, 2020
Dollar Dives, Stocks Roar on Election Clarity – What’s up in Markets

Dollar Dives, Stocks Roar on Election Clarity – What’s up in Markets

November 9, 2020
Tiffany beats profit estimates, signals recovery after pandemic blow

Tiffany beats profit estimates, signals recovery after pandemic blow

August 27, 2020
U.S. stocks lower at close of trade; Dow Jones Industrial Average down 0.37%

U.S. stocks lower at close of trade; Dow Jones Industrial Average down 0.37%

November 6, 2020
Stocks – Wall Street Higher on Fed Program, OPEC+ Eyed

Stocks – Wall Street Higher on Fed Program, OPEC+ Eyed

April 9, 2020
Factbox: Who’s bidding to be next World Trade Organization chief?

Factbox: Who’s bidding to be next World Trade Organization chief?

June 8, 2020
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.