Netflix CEO says there's no limit on investing in new shows

Netflix sign Los Gatos
Netflix’s content budget has been steadily increasing over the past few years. In 2017 the company spent about $6 billion and in 2016 it spent about $5 billion. (Netflix)

Netflix already has a massive content budget slated for 2018, but CEO Reed Hastings sees no reason that it won’t keep going up in the future.

Hastings spoke with Business Insider and said there’s no limit on investments for original material. He predicted the budget would keep growing as Netflix keeps growing, adding that investors and consumers both seem to like the huge amounts of content.

The comments align with what Hastings told investors during Netflix’s fourth-quarter earnings call in January, when Netflix confirmed that it’s content budget for 2018 would be $8 billion.

Sponsored by Dell Technologies

Whitepaper: How to Elevate Your Content Delivery Workflows With Dell EMC PowerScale

Learn how Dell EMC PowerScale helps meet surging viewer demand while reducing costs with a single centralized platform for the ingest, processing, and delivery of the content your viewers love.

“…It is 8 billion as you’ve pointed out for this year but it will definitely of course be higher in 2019 and 2020. So don’t think of it as 8 billion as some new plateau. Instead it’s just a point in time as we grow both the revenue and our content budget,” Hastings said according to a Seeking Alpha transcript.

RELATED: Netflix will release about 2 shows or movies per day in 2018

Netflix’s content budget has been steadily increasing over the past few years. In 2017 the company spent about $6 billion and in 2016 it spent about $5 billion.

As the content budget continues to grow so too do Netflix’s subscriber totals and revenues.

During the most recent quarter, Netflix brought up its total to 125 million subscribers after adding nearly 2 million new U.S. subscribers and nearly 5.5 million new international subscribers. Netflix’s total $3.7 billion in revenue was up 43%, which the company said was the fastest quarterly rate of growth ever for its streaming business. It attributed the rise to a 25% increase in average paid streaming memberships and a 14% rise in average selling price.

Suggested Articles

Warner Bros. traveled a heretofore unthinkable path this week when it said it would send all its 2021 films directly to HBO Max.

Warner Bros. Pictures will release its entire 2021 film slate on HBO Max the same day they premier in theaters.

DirecTV and Dish Network are both experiencing massive channel blackouts as distribution talks with broadcasters break down.