Netflix Wants Half Its Library To Be Original Programming
Not only are Netflix's original series attracting viewers, they're cheaper to make
Did you love “Stranger Things?” Are you a big fan of “Master Of None?” Well, good news, because over the next few years, Netflix says it aims to fill half of its library with original content.
Speaking at Goldman Sachs’ Communacopia conference, CFO David Wells said the Netflix is on a “multiyear transition and evolution toward more of our own content.” Wells said its already “one-third to halfway” in this regard, adding that not every show has to be a huge hit a la “Stranger Things” or “House of Cards.”
At the beginning of the year, Netflix’s content chief Ted Sarandos said the company planned to put out 600 hours of original content in 2016, after the streaming service put out 450 hours worth of originals in 2015. Going forward, this proposed 50 percent target would also include movies it acquires, like “Beasts Of No Nation,” or more recently, the Barack Obama movie “Barry.”
But this shouldn’t come as a huge surprise, as Netflix frequently compares itself to HBO and previously stated its preference towards developing its own shows. The reasons why are obvious: Exclusive content is what sets each service apart from the next, and original content is cheaper to produce. Licensing content from studios is notoriously pricey, and the company was rumored to have spent $300 million to get the exclusive rights to the Disney catalog. When Netflix announced it’s $5 billion content budget for 2016, only 10 percent of that was for originals (and there has been no shortage of Netflix originals this year).
So maybe you’ve finished “Bojack Horseman” and you blasted through “Love” and you are waiting patiently for the second season of “Narcos.” But going forward, when you want something new to watch, Netflix intends to make sure you’re covered.