Netflix's US$17 Billion 2021 Content Budget Revealed
In a newly released first-quarter financial results, streaming services entertainment giant, Netflix, has revealed its 2021 content budget, which is set to be a staggering US$17 billion, on par with its 2020 spend.
The streaming giant noted in its shareholder letter that, currently, the content platform is producing in its significant markets safely, with the exception of Brazil and India. Forecasting on plans, Netflix assured that it would spend US$17 billion in cash on content to continue with delivering a variety of titles to its customers, as well as more originals content. This is in the assumption that no drastic changes impact the market.
Estimations by analysts, together with BMO Capital Market's Dan Salmon, examined the content platform's spend, which was over US$12 billion in 2018, and then increased to above US$15 billion in 2019 and roughly US$17 billion in 2020. The analysts now estimate that the streaming services company will spend approximately US$26 billion by 2026. This view is based on the recent ratings revealed by the service, which reflect a surge of original releases such as 'Who Killed Sara?' which had the biggest launch for a Netflix foreign-language series. At this instance, the streamer's number one original series overall remains Bridgerton, which smashed Netflix ratings records earlier this year.
The likes of Disney+, Apple TV+ and Amazon are also beginning to be stiff competition players for Netflix, with Disney+ forecasting to spend around US$8 billion a year over the next few years.