As most of us, are already aware of the fact, that Netflix Inc. wishes to spend a good amount on delivering high end content to viewers. This is not something unusual since all online streaming giant wish to do the same. So a battle has ignited amongst all content providers, where Netflix is adamant to sabotage those who are already doing better with our original content.
In the fiscal year of 2016, Netflix has plans on spending almost $5 billion on content. Recently it was reported that it has spent a minimal percentage on a new film venture. This is the second film which the company is producing after Beasts of No Nation. The movie did not really do quite well on the box office but they still managed to get 3 million views on the online streaming service. When considering Netflix’s investment on content two years back, the amount has simply doubled.
NFLX wishes to capitalize on the popularity of its top notch shows namely House of Cards and Narcos. Currently, the company is so much focused about new content that they were least bothered about the deal expiring which has caused damage since hundreds of films were in the lineup including The Hunger Games: catching fire. So it is estimated now that the company will perform things in a different way since they now wish to turn up with more series.
So now with the level of interest the company is investing on this venture, it is estimated that this might just surpass the amount sent by the rivals of Netflix accumulated. This is actually a good thing since they are currently more inclined towards original content. Apart from that, it has also wishes to focus on global expansion where they now wish to enter new countries by maximizing its reach. So by coming up with new contact, they can actually lure new consumers who are confused about which service to opt for.
Netflix has taken a smart move since original content is very important to get traction. The company’s core rival HBO spends huge amounts on producing Game of Thrones which has become a source if glory for them. If Netflix wants to take this glory away then it is only possible to do so through more series like the House of Cards.
The company already has a huge consumer base. Thus by doing this, they can actually fortify their hold on the consumers.