Netflix executives see content spending reaching 17 billion dollars in 2021 and staying there until 2023.
It’s the latest shift for the streaming giant that has long been gung-ho about spending and was seen as rising to $20 billion. But as part of the industry’s overall rethink – and its own – CFO Spencer Neumann said, “We’re looking to spend about $17 billion this year, and we’re in the right ZIP code.”
Netflix Q2 Earnings Report: The Last Full Coverage
“We came up with a big change in the business,” he said during the company’s second-quarter video call, referring to the drop over the past five to 10 years in primary production, which is now more than 60 percent. at all. Internal spending will continue to grow but will be “moderate,” he said. “We’re now being smarter about how we can direct our money to get the most out of it.”
“We’ve used the process we’ve used to get to where we are today,” said co-CEO Ted Sarandos, agreeing that “for the most part, we’re in the right ZIP code” for the next few years.
Judges confirmed that the costs of Covid, which have increased spending recently, have decreased. ” Stranger Things 4 came again in this situation – it helped to eliminate the loss of subscribers last quarter but increased the total cost.
“This show, in particular, was affected [by Covid] a lot because of the young people, the size and the scale of the production and the many places we shot. It was an expensive burden to produce it,” Sarandos. he said, encouraged by founder and co-CEO Reed Hastings.
“One of the reasons for splitting the season in half is how long it took to make the show,” he added, “and a lot of it was stopped because of the early production cancellations, and restarting production and being very careful with the release of the show starting in Covid. So it was more financially affected than many of our other projects. . . . If you do that again, you can get a few more parts in it.”
Pushing and pulling around is too much use. Doug Anmuth of JPMorgan, who has been asking questions, noted that half of the owners he talks to want to spend more money, while others want to pull back.
“Welcome to my life,” Sarandos laughed.
