Netflix announces to release 600 hours of original content until the end of this year.Last week, a report conducted by Michael Nathanson of MoffetNathanson revealed that Netflix Inc. is causing the usual TV viewers watch less TV. In the report, it was mentioned that the US subscribers have streamed an impressive 29 billion hours of video last year. Combining the US viewers and the global Netflix network, a total of 42.5 billion hours of video was streamed in 2015. This shows how powerful and dominating the streaming giant is in the industry.
Being a global TV network, Netflix wanted to make sure that it is doing everything correctly. Initially, the company started as an online video content service provider but since the past two to three years, it slightly tweaked its plan to being what it previously was. Netflix planned to expand in the original programming space and its performance can be determined by how TV networks are under pressure now. The original content domain was previously managed and dominated by the TV networks, but the streaming service providers now operate the notion, which once belonged to the basic and premium cable.
Netflix, Hulu, and Amazon Prime Video recently all expanded and started producing original programming, which has completely sidelined the TV networks. Original content was one thing from which the basic and premium cable companies could have competed against the likes of streaming giants.
Since last year, Netflix has invested billions of dollars in programming and announced to double its programming this year as well. Its advantage is that it can spend immensely on producing original programming but the TV networks are helpless. Recently, HBO invested a good chunk on money on a show, which so far has been a flop. Now it cannot afford to invest again until the deal is right.
The quantity does not really matter on TV but viewers actually want quality. Analysts were concerned whether the TV market has become saturated. The Chief Content Officer, Ted Sarandos, did not agree with it. He said, “Is there too much TV? I'll pause for a second...We don't think there's too much TV. And if there is too much TV, someone else is going to have to slow down, because we have big plans for 2016 and beyond.”
Amazon Prime Video and Hulu have struggled to get the desired content but this is not the case with the streaming giant. Since the beginning, it wanted to operate on the business model similar to that of Time Warner’s HBO.
Ted Sarandos affirmed that the plan is to release 600 hours of original programming this year. He added, “We're going to spend in 2016 about $5 billion on content on a P&L basis, which means about $6 billion in cash.”
Being a global TV network, Netflix wanted to make sure that it is doing everything correctly. Initially, the company started as an online video content service provider but since the past two to three years, it slightly tweaked its plan to being what it previously was. Netflix planned to expand in the original programming space and its performance can be determined by how TV networks are under pressure now. The original content domain was previously managed and dominated by the TV networks, but the streaming service providers now operate the notion, which once belonged to the basic and premium cable.
Netflix, Hulu, and Amazon Prime Video recently all expanded and started producing original programming, which has completely sidelined the TV networks. Original content was one thing from which the basic and premium cable companies could have competed against the likes of streaming giants.
Since last year, Netflix has invested billions of dollars in programming and announced to double its programming this year as well. Its advantage is that it can spend immensely on producing original programming but the TV networks are helpless. Recently, HBO invested a good chunk on money on a show, which so far has been a flop. Now it cannot afford to invest again until the deal is right.
The quantity does not really matter on TV but viewers actually want quality. Analysts were concerned whether the TV market has become saturated. The Chief Content Officer, Ted Sarandos, did not agree with it. He said, “Is there too much TV? I'll pause for a second...We don't think there's too much TV. And if there is too much TV, someone else is going to have to slow down, because we have big plans for 2016 and beyond.”
Amazon Prime Video and Hulu have struggled to get the desired content but this is not the case with the streaming giant. Since the beginning, it wanted to operate on the business model similar to that of Time Warner’s HBO.
Ted Sarandos affirmed that the plan is to release 600 hours of original programming this year. He added, “We're going to spend in 2016 about $5 billion on content on a P&L basis, which means about $6 billion in cash.”