Netflix chief content officer: original is where it’s at
Streaming Video On Demand (SVOD) market leader Netflix knows what it’s content strategy needs to be if it’s going to outpace its rivals: original, original, original. The company, which shot to international superstardom over the last few years, and makes up one quarter of the oft-discussed ‘FANG’ powerhouse (Facebook, Amazon, Netflix, and Google) has announced that 85% of its content spending is on original programming. That’s very good news for viewers and investors alike.
Netflix’s share price has appreciated by 71% this year alone!
SOURCE: Yahoo Finance
Ted Sarandos, Netflix’s chief content officer, says 85% of Netflix’s “up to $8 billion” spend will go on its own original shows in 2018. According to Sarandos, this means the company will have about 1,000 originals on its platform by the end of the year, with almost half (470) being added between now and then.
These originals – which are watched by more than 90% of Netflix’s customers – are fast gaining a reputation as some of the best programming around. They include breakout successes like 80s tribute supernatural horror Stranger Things and Natalie Portman science fiction blockbuster Annihilation. The Monday before last alone, the company announced a second series of its 1970s reboot Lost in Space and a new horror anthology from Oscar-winning filmmaker Guillermo de Toro.
Explaining how the company keeps scoring wins with its original content, Sarandos said: “The creators we’re talking to, they watch Netflix and they want to be on our network. It’s a great time to be a producer, that’s for sure. The way we can secure those shows is having a great reputation with talent, having a brand people want to be associated with, and a good track record of delivering.”
The main value in original content from a business perspective, of course, is quite simple: when it’s done well, it results in a blockbuster product for which there is huge demand, and which cannot be accessed anywhere other than your platform. Years down the line, when there are no more conversions to be had from this programming, platforms can license out older series to terrestrial TV channels. All in all, it’s a win-win, and Netflix is doing it better than anyone else out there.
Dominion holds Netflix in its Global Trends Ecommerce Fund.
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