Netflix Plans to Fill its Streaming Catalog With 50% Original Content

[MacRumors]

Netflix is aiming to fill half of its streaming catalog with original programming over the next few years, according to company CFO David Wells (via Variety).

The announcement marks a renewed push towards offering original TV shows and movies commissioned by Netflix over stocking licensed content. The streaming catalog is already one third of the way toward reaching the target, according Wells, who said the company was undergoing "a multiyear transition and evolution toward more of our own content".

Netflix expects to launch 600 hours of programming in 2016, up from 450 hours in 2015, said content chief Ted Sarandos at the start of the year. The company has projected content spending on a profit/loss basis to rise from $5 billion in 2016 to more than $6 billion in 2017.

Wells said the original TV series and movies will continue to be a mix of content owned and produced by Netflix, as well as co-productions and acquisitions. The streaming market is seeing a decreasing cost of production and an increasing number of bidders, making it cheaper to take risks on new programming.

"You have supply and demand settling out," Wells continued. "We don't necessarily have to have home runs. We can also live with singles, doubles and triples especially commensurate with their cost."

The goal, he said, is to release something that appeals to each individual subscriber, every single month, and on that front "we've got a ways to go" across different genres and formats. "The nice thing about the platform is it allows a lot of creative freedom," Wells added, offering the production of episodes of varying lengths as an example.

Netflix is in the process of transitioning all U.S. subscribers to its standard $9.99 monthly plan, which it says will help generate revenue for investing in original content. However, the forced switch increases the price for some older subs by $2 per month and has led to higher cancellation rates than the company anticipated. Netflix reported a lower-than-expected 160,000 net U.S. streaming subs for the second quarter.

A follow-up season of Stranger Things, one of Netflix's most recent breakout hit shows, has already been confirmed. On August 31, the company renewed the series for a second season of nine episodes, to be released in 2017.

Article Link: Netflix Plans to Fill its Streaming Catalog With 50% Original Content

 

[farewelwilliams]

how about a sitcom in front of a live audience

but none of the rewrites or the enforcement of unnecessary characters by a network?

 

[Codeigniter]

Erm... how about dropping those aggressive VPN blocks every other week. Argh

 

[Mac Fly (film)]

I'm sure Cue is regretting not bidding on Netflix now. Their original content is wonderful. Expect good things.

 

[fitshaced]

Netflix seems to do well with a season or two of original shows. But is there an example of a series actually continuing to be good after season 2? Or even season 1 in some cases? Narcos is rubbish in season 2, House of cards went downhill at season 3, Orange is the New black was poor after season 1.

 

[Fzang]

Wish they'd just put English subtitles for more shows, for those of us not based in English speaking countries. Sometimes I can't understand a word of what the actors mumble...

 

[RogerEast]

Netflix seems to do well with a season or two of original shows. But is there an example of a series actually continuing to be good after season 2? Or even season 1 in some cases? Narcos is rubbish in season 2, House of cards went downhill at season 3, Orange is the New black was poor after season 1.

To each their own, but I thought OITNB peaked during Season 4, and I'd hardly call Narcos S2 'rubbish'.

And then there's BoJack Horseman, which has consistently improved, and Bloodline, which also had a strong second season. I could go on. But again, opinions are opinions.

Personally, I'm thrilled with this news. A few years ago I might've been on the fence, but Netflix Original is generally a mark of quality nowadays.

 

[Schranke]

Well since they are not really adding anything interesting new I can see how they want to make more of their own.
Also i really wish they would stop that damm VPN blocking or making sure the content is available in all countries

 

[639051]

They've done well with Longmire too. Wasn't theirs originally but they have run with it since season 2 and now 4 is coming out. Love stranger things as well. I'm all for this!

 

[itsmilo]

Wish they'd just put English subtitles for more shows, for those of us not based in English speaking countries. Sometimes I can't understand a word of what the actors mumble...

Dont they all of subtitles in all kind of languages including English? The ones ive watched did and i watch a lot of tv

---

Good, Network TV sucks more and more with the over the top political correctness. No more risk taking cuz someone might get offended

 

[michaelant]

Good for them. I hope they pull it off, because I want Netflix around and strong for a long time -- for their disc plan.

I'm much more a movie person than a TV person, so yeah, I still get blu-rays in the mail. Sure, I could stream individual movies from iTunes, but at $6 a pop, it makes much more $ sense to just do a couple disc plan from Netflix. Plus all the movies that are only available to buy, not rent, on iTunes and elsewhere.

I want to watch what I want to watch, not choose from what is available, for streaming. Apparently I'm gonna have to get discs for a long time to come. Oh well.

 

[Jason83]

Then pick up CBS' Limitless for season 2!

 

[milo]

More cancellations than they expected but I bet quite a few of those come back before long. There just aren't alternatives with as much available, especially not at that price.

I just hope this announcement just means more original content, not significantly cutting back on movies and especially TV.

 

[_Refurbished_]

While their shows are great, this has the potential for another company to swoop in and take customers away.

Many people aren't interested in their shows and are looking for a cheap way to watch content without a cable subscription. Their shows are the cherry on top, not the cake. If Netflix significantly cuts the rest of their content, I may drop them.

 

[Return Zero]

I don't like the shift in business. For Netflix, I'm sure it's good, and don't get me wrong, they pump out some good original content. That's not why I originally signed up for Netflix, though (back when it was DVDs in the mail). I want a streaming service that actually has all the new movie releases from all major studios. I'd consider paying $20/mo for it, because I watch a lot of movies.

I also hate this practice of studios now letting you buy a digital movie on release day, but having to wait 2+ weeks to rent it. This is so infuriating and backwards. Two weeks prior, your movie was in the cheap theater and I could go for $2 to see it on the big screen. Now my only legal option is to pay $20 to own the film, or wait a couple weeks and rent it for $6?

 

[apolloa]

I've found the films selection on Netflix as of late to be pretty good! I haven't watched stranger things yet though... but I did see season 1 of Mr Robot on Amazon.
The content that Netflix and Amazon have produced is of a very high standard it must be said, as shown by the awards some have won.

 

[Sasparilla]

I think this is confirmation that their bet on being able to reproduce what they do with DVD's / BluRay's (which they could purchase retail if the studio's gave them a hard time) has failed with digital media - with the Studio's gradually raising prices and cranking down what Netflix can buy (also making Netflix DVD / BluRay toe the line for delayed rental dates unlike they used to do back in the old DVD BluRay only days).

IMHO, not Netflix's fault, just the media cartels gradually eliminating Netflix as a competitor - they want this money and control the spigot. In the end the most profitable world (for the Studio's, whose greed and avarice knows no bounds) will be one without physical media that you can buy / own with only a pay per view streaming option - where the studio's get paid for every viewing. Guessing that is their promised land. Have to get rid of Netflix first, then physical media, then shift releases on iTunes without purchase options after that. We'll see what happens.

 

[Futurix]

See how little third-party TV series UK Netflix has got (compared to US one), this probably won't change anything here.

 

[mwd25]

While their shows are great, this has the potential for another company to swoop in and take customers away.

Many people aren't interested in their shows and are looking for a cheap way to watch content without a cable subscription. Their shows are the cherry on top, not the cake. If Netflix significantly cuts the rest of their content, I may drop them.

I was thinking the same thing. Adding more original content is fine, but does that mean you wont be paying for the rights to stream other shows? If so, I would love to see Amazon come in and buy the rights to the shows Netflix doesnt keep. Im going to keep Amazon regardless, If Netflix got rid of a significant amount of their other shows, and they were picked up by Amazon, I would definitely consider leaving. I would hate to see another streaming service pick up the shows. I really dont want to have to add another service, but consolidating what I have would be great.

 

[jonnysods]

Must be way cheaper than licensing. They make good shows, but I really want to watch other people's stuff too. So as long as it's not a 50% decrease in content to put in their content, I'm good with it.

 

[2010mini]

While their shows are great, this has the potential for another company to swoop in and take customers away.

Many people aren't interested in their shows and are looking for a cheap way to watch content without a cable subscription. Their shows are the cherry on top, not the cake. If Netflix significantly cuts the rest of their content, I may drop them.

There are already other providers out there to watch tv content cheap. Hulu and Amazon both offer that. The problem is people are spoiled by Netflix's low price and not are realistic on just how expensive it is to get licenses for content..... even old content. And content that comes with a lot of restrictions on where Netflix can offer it. (Hence the VPN blocking) their original content though can be offered everywhere.

It's sad to see you will drop a service that has gone a long way to wake up the industry about streaming. If Netflix is to survive, it has to go the path of original content. It is the only way they can compete with the networks, studios and ISPs.

 

[Fzang]

Dont they all of subtitles in all kind of languages including English? The ones ive watched did and i watch a lot of tv

There are LOTS of movies that only have Danish subtitles, and no others. English movies, mind you. Even if they have English subs in other Netflix regions.

 

[2457282]

I have been a loyal Netflix subscriber since its inception with the 3 DVDs at a time plan. And I may stay with them for a bit longer. I do like house of cards (getting a little silly and my wife has already been turned off), Marco Polo and Daredevil. However! We primarily watch films or documentaries, meaning we are not series watchers. Literally except the three I have mentioned we do not watch any other series, on any channel/service. If Netflix continues down this path (which does make sense for them), eventually I will drop them. We only watch a few films a month (3 may be a high average) so maybe just renting through Apple TV is all I will need.

 

[CaneCollegeboy]

Basically this is the de facto move for them to make. Licensing fees are going up and every network now wants to keep there content for there own online streaming service or equivalent. CBS is going to go all in for there streaming service banking on star trek so watch star trek ( all versions ) disappear from Netflix, Hulu, Amazon etc. If im not mistaken the only way to legally watch the big bang theory online is to either buy it (UV,Itunes,Amazon) or use the CBS streaming service.

 

[xlii]

I'm in the US and we've loved watching all the foreign shows and movies that have been on Netflix over the years. Sadly it seems that Netflix's catalog of good foreign shows is drying up.