4 ms·

"In 2016, Netflix spent $5 billion on original programming. Netflix plans to spend $6 billion creating 1000 hours of new content this year, more than doubling i

"In 2016, Netflix spent $5 billion on original programming. Netflix plans to spend $6 billion creating 1000 hours of new content this year, more than doubling its 2016 lineup." That's a little bit worrying : double the content, with only a slightly higher budget. I wonder what impact this will have on the quality of the shows. No advertising is great but meaningless when the content is rubbish.

cwp 10y ago
They double the content because they still have all the shows they made last year. That's what makes this model so powerful: new subscribers haven't seen House Of Cards, season 1 yet, so the value proposition keeps getting better.
cosmie 10y ago
For additional seasons of their existing shows, they already have sunk costs for sets, props, and all that jazz. I don't know much about the economics of production, but I'm sure there's some sizable cost savings from leveraging those existing assets during subsequent seasons (same for movie sequels). They've also been pumping out animated kids shows quite heavily. Those are almost certainly less expensive per hour than a lot of their blockbuster hits, and would easily allow for a 66% increase in content-hours with only a 20% budget increase. And, anecdotally, are the types of shows that keep subscriptions active long after parents stop actively watching things. Kids get attached to characters easily, can watch the same season repeat dozens and dozens of times, and benefit from consistency (i.e. not app hopping between Amazon Video, Netflix, Hulu, etc). And the value of Netflix during times like extended traveling and running errands is not to be underestimated. My subscription would have gone long ago if my daughter weren't so attached to some of their Originals. They're really good at making spinoffs of popular movies (like the Puss in Boots spinoff from Shrek) and popular toys (like Ever After High, based on the Monster High dolls).
1123581321 10y ago
I'm concerned, but optimistic overall. I see Netflix benefitting from all these factors: - existing shows which reduce set/CG/marketing costs; - lower production costs as shortage of sets and filming equipment is lessened by new supply entering market; - less need to higher huge stars to sell the idea that the programming is high quality, and with more huge stars willing to do TV, paying not quite as many million dollars to get them; - expanding into lower cost TV (similar to the Tesla strategy to move downmarket.) Sadly, this means people who enjoy a lot of the existing shows won't have twice as many shows targeted towards them, but it shouldn't affect their perception of Netflix.
HeavenBanned 10y ago
Hah. Netflix has a glut of terrible, low-quality shows. I don't care how big their catalogue is if I don't want to see 99% of it. Moana has been in theatres for a while, so Netflix offers "Lilo and Stich" as a poor-mans Moana. Who do they think I am? Old Netflix could have you watching a big-hit movie in a couple days if you waited for the DVD in the mail. Netflix has a long way to go.
dagw 10y ago
I wonder what impact this will have on the quality of the shows. If they're smart, none. You can't just go out and buy quality. Stranger Things for example was a pretty low budget show and most people really quite liked it. Marco Polo on the other hand cost a fuck ton and I've yet to meet anyone who really liked it.
- ashark 10y ago
  > Marco Polo on the other hand cost a fuck ton and I've yet to meet anyone who really liked it. My wife's pitch to try to get me to watch that was "it's pretty good when Marco Polo's not in the scene". Didn't work.

cwp 10y ago

They double the content because they still have all the shows they made last year. That's what makes this model so powerful: new subscribers haven't seen House Of Cards, season 1 yet, so the value proposition keeps getting better.

cosmie 10y ago

For additional seasons of their existing shows, they already have sunk costs for sets, props, and all that jazz. I don't know much about the economics of production, but I'm sure there's some sizable cost savings from leveraging those existing assets during subsequent seasons (same for movie sequels). They've also been pumping out animated kids shows quite heavily. Those are almost certainly less expensive per hour than a lot of their blockbuster hits, and would easily allow for a 66% increase in content-hours with only a 20% budget increase. And, anecdotally, are the types of shows that keep subscriptions active long after parents stop actively watching things. Kids get attached to characters easily, can watch the same season repeat dozens and dozens of times, and benefit from consistency (i.e. not app hopping between Amazon Video, Netflix, Hulu, etc). And the value of Netflix during times like extended traveling and running errands is not to be underestimated. My subscription would have gone long ago if my daughter weren't so attached to some of their Originals. They're really good at making spinoffs of popular movies (like the Puss in Boots spinoff from Shrek) and popular toys (like Ever After High, based on the Monster High dolls).

1123581321 10y ago

I'm concerned, but optimistic overall. I see Netflix benefitting from all these factors: - existing shows which reduce set/CG/marketing costs; - lower production costs as shortage of sets and filming equipment is lessened by new supply entering market; - less need to higher huge stars to sell the idea that the programming is high quality, and with more huge stars willing to do TV, paying not quite as many million dollars to get them; - expanding into lower cost TV (similar to the Tesla strategy to move downmarket.) Sadly, this means people who enjoy a lot of the existing shows won't have twice as many shows targeted towards them, but it shouldn't affect their perception of Netflix.

HeavenBanned 10y ago

Hah. Netflix has a glut of terrible, low-quality shows. I don't care how big their catalogue is if I don't want to see 99% of it. Moana has been in theatres for a while, so Netflix offers "Lilo and Stich" as a poor-mans Moana. Who do they think I am? Old Netflix could have you watching a big-hit movie in a couple days if you waited for the DVD in the mail. Netflix has a long way to go.

dagw 10y ago

I wonder what impact this will have on the quality of the shows. If they're smart, none. You can't just go out and buy quality. Stranger Things for example was a pretty low budget show and most people really quite liked it. Marco Polo on the other hand cost a fuck ton and I've yet to meet anyone who really liked it.

ashark 10y ago
> Marco Polo on the other hand cost a fuck ton and I've yet to meet anyone who really liked it. My wife's pitch to try to get me to watch that was "it's pretty good when Marco Polo's not in the scene". Didn't work.