Netflix, Inc. (NASDAQ:NFLX): original content is becoming valuable as it seeks to cement its position in the streaming industry.
Netflix Inc. started its original programming domain back in 2013 with its first ever original TV series now famously known as the House of Cards. Since then, it vowed to not stop coming up with excellent quality original content which has increased in numbers in recent years. The company now owns and produces several big name shows which include House of Cards, Orange is the new Black, Narcos, and many others. It is also creating content in different languages in order to cater the needs of the international customers.
Netflix became a true global TV network when it launched in 130 countries simultaneously hence it is not only focusing on coming up with online movies and TV shows that are in English but its recent big hit original series Narcos was in Spanish (at least 80 percent of the show). But this is just the beginning for the US streaming giant. The company said to double its original programming this year and decided to spend around $2 billion on original content. And the plans for next year are even bigger.
The streaming service provider has plans to come up with more shows next year and has already allocated $5 billion investment on original programming for 2017. The streaming giant has truly changed the perception of how a viewer watches television with an option to binge watch entire seasons of a favorite series. It is known that Netflix already owns one of the best content libraries of original programming and analysts know that it is the most significant asset for Netflix at this moment.
When the company decided to announce a price hike from this month, many customers showed discontent and were not willing to renew subscriptions once the increased prices are implemented. However the professionals believed that the original programming of Netflix is enough to hold on to its existing customers. Furthermore, its original content is also attracting new customers to join the service and the results are impressive. Netflix’s customer base has now grown to a staggering 77.7 million streaming subscribers out of which almost 45 to 50 million customers reside in the United States.
Recently, Morgan Stanley also conducted a survey in which the US streaming business was voted as the best original content media company in the industry. According to the report, “Of the respondents to the survey, 29% voted for Netflix (NFLX) as the best in original programming, with HBO getting only 18% of the votes. Amazon was in the 4-5% range.”