Published: Wed, May 16, 2018
Sports | By Brooke Harris

Classics, what classics? 85% of Netflix's money is spent on original content

Classics, what classics? 85% of Netflix's money is spent on original content

Differentiating its local original content from that of local broadcasters will help Netflix succeed in what he termed "a television starved market", speaking at the MoffettNathanson Annual Media & Communications Summit in NY.

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According to Ted Sarandos, Netflix's content chief, a massive 85% of what it is spending is now going on original content.

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Around 470 of the streaming service's originals are set to premiere between now and the end of 2018, which equates to around two new releases a day on average. While the algorithm remains and is strengthened every time you click on something to watch, what you are actually choosing is changing and it's not because of your tastes, but because Netflix is adding more of its original content to its archive and spending lots on it. In February, Netflix CFO David Wells said that spend would give the service around 700 original TV shows by year-end. Consumers said that content variety was the most appealing feature of Netflix, while exclusive content was the least important to them, per Business Insider Intelligence exclusive data.

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Netflix's heavy investment in its originals certainly appears to have paid off so far. And with a lineup of shows like Stranger Things, Lost in Space, big deals with Ryan Murphy and Shonda Rhimes, and the newly-acquired horror anthology from Guillermo del Toro, it's no wonder the streaming service has such a great reputation. But prices do eventually go up, and for a company such as Netflix, finding that maximum price customers are willing to pay for something is always a mix of science and guesswork. In doing so, they have created a huge number of original programs, and it looks like they have no plans of slowing down. Stay tuned for much more from Netflix coming soon. Netflix ended the first quarter of this year with 56.7 million subscribers in the U.

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