Netflix hit the industry with some bombshell moves this month. First, it announced that it plans to spend $8 billion on original content next year (including on 80 new movies). This is far more than any other online player. Obviously, this is great news for its 100 million-odd customers worldwide.
Netflix and Why the Future of Streaming Looks Like Old-School TV
Netflix hit the industry with some bombshell moves this month. First, it announced that it plans to spend $8 billion on original content next year (including on 80 new movies). This means Netflix isn’t just your Blockbuster replacement anymore. Original content — including the likes of Disney — is moving away from Netflix. And Netflix looks like an old-school TV network. If one had to predict what the industry will look like in five years, one might say there will be a set of online channels with the expectation that consumers will subscribe to all or most of them. Subscriber revenue is nice, but it has a flip side. When your business has reached its peak, letting it go can be hard. The same flip side will come for Netflix. It doesn’t have the luxury that internet providers have, that as soon as a kid leaves home they need their own subscription. So Netflix’s subscription business may not grow with population.