Netflix Vows To Spend $3 Billion On New Content
Netflix has vowed to spend $3 billion on new content. Although the content-streaming company was hit with rising costs associated with international rights, they reported profits of $112 million in 2013. Their continued success has prompted the company to spend billions to expand their TV and film content.
In their annual report, Netflix reported spending nearly $7.3 billion on program license agreements. Although the amount is steep, representatives said it will be paid over a period of three years. In contrast, the company reported $4.3 billion in revenue for 2013, which was in increase of 12 percent from 2012.
As reported by The Guardian, the increased profits impressed investors, driving stock prices up to $367 per share by the end of the year. At the beginning of 2013, the shares were valued at $92.
In their Securities & Exchange Commission filing, Netflix outlined their planned expansion:
“We expect to significantly increase our investments in international expansion, including substantial expansion in Europe in 2014, and in original content.”
Although the streaming content is available in several European countries, they will expand their services to include France and Germany in 2014. The budget also includes the continued production of original content, which has become popular with viewers.
Original programs, including Orange is the New Black and House of Cards, have gotten fantastic reviews. As Netflix releases an entire season at once, many viewers binge-watch or marathon the episodes. The viewing trend, which originated with Netflix, involves watching an entire season within days or weeks.
House of Cards, in particular, was an instant success. The political drama, starring Kevin Spacey, follows the lives of several politicians who will do anything to succeed. The first season included 13 episodes, which were released in February 2013.
In addition to its popularity among fans, the unique program caught the attention of critics and won several awards. Robin Wright won a Golden Globe Award for Best Performance by an Actress in a Television Series – Drama. House of Cards also won Primetime Emmy Awards for Outstanding Cinematography, directing, and casting.
As the second season is set to begin, the company has announced plans for a third season in 2015.
According to Instant Watcher, Netflix has added a lot of popular new content for February. The top ten programs and films currently include The Croods, Bates Motel, The Good, the Bad, and the Ugly, Airplane!, A Fistful of Dollars, The Usual Suspects, Day of the Dead, Patriot Games, Nazi Temple of Doom, and MASH.
As a large portion of the United States has experienced a specifically harsh winter, Netflix remains an entertaining and affordable entertainment option.
