Netflix’s leadership has revealed the future direction of the platform. Financial Director David Wells has revealed to the media that in the next few years at least half of the material available will be original productions. The rest of the content is to be licensed.
Netflix started its market activity by broadcasting content from third-party vendors, made available on a licensed platform. This strategy made sense at that time, because it was able to offer users a rich movie offer right away. Over time, however, the platform began to introduce more and more original content, produced solely for her needs. This turned out to be a bullseye.
Such series as “Orange Is the New Black”, “Daredevil” and “Stranger Things” gained instant popularity, showing the management of the platform that customers want original production. So, the boss has decided to set a new direction for the development of the company, based on the increase in original content produced by Netflix.
Chief Financial Officer David Wells, in a conversation with journalists, revealed that in the next few years, the platform intends to implement this plan successively. Its goal is to make at least half of the original content in the offer, while the rest of the material will be licensed.
Only this year in Netflix will be about 600 hours of original content, which produced $ 5 billion dollars. By next year, this amount will increase to 6 billion dollars. For comparison, last year the platform had only 450 hours of original content.