Netflix plans to spend $6 billion this year to create original content

Netflix said that as the number of subscribers continues to increase, there are still many outstanding TV series that have not yet been filmed, and plans to invest $6 billion in original content this year.

Original title: Netflix CEO: Original content will invest $6 billion this year

Netflix CEO Reed Hastings

According to foreign reports, US video streaming service provider Netflix CEO Reed Hastings said on Wednesday that the company plans to invest $6 billion in original content this year.

Hastings said in an interview with financial channel CNBC,"As the number of company subscribers continues to increase, we hope to expand our budget for original content. There are also many excellent TV series that we have not yet filmed." Hastings said that in order to continue to increase the company's subscriber base, more TV series and movie content will be needed.

Netflix previously paid $60 million to Brad Pitt's new movie "War Machine" to allow Netflix users to watch it online when it opens in theaters. Although large theater chains have long disagreed with the release of new films through streaming services during the same time as theaters, Hastings believes that consumer needs may change in the future. "We hope that theaters will wake up over time and say that consumers should be provided with choices," Hastings said.

Netflix's spending on original content continues to increase as other video streaming service providers and cable networks compete to find original content. "This situation is good for talents and writers," Hastings said. "Competition in the market is increasing. All newcomers and established companies like HBO are starting to increase their investment in original content. This will set off a new era in the TV industry."

For the past eight years, Netflix has maintained a basic monthly fee of $7.99. Hastings did not disclose when the company would increase its fees.

In order to snatch video users, companies such as Netflix and Amazon continue to increase their investment in original content. Creating original content by Amazon and Netflix is like cooking your own at home. You can not only control what you do, but also the entire production process. But if you buy copyright from outside, it will become ordering takeout, and you can only eat whatever they send. Creating a variety of original content can attract and retain users, while establishing your own brand, rather than making wedding dresses for others and helping people test users 'needs.

Netflix's previously released first-quarter 2017 earnings report showed that the company's revenue for the quarter was US$2.637 billion, an increase of 34.7% compared with US$1.958 billion in the same period last year; net profit was US$178 million, an increase of 536%. Netflix's first-quarter revenue was in line with Wall Street analysts 'previous expectations, with earnings per share exceeding expectations, but the net increase in global streaming service subscribers during the quarter fell short of expectations.

Netflix's global service subscribers increased by 4.95 million in the first quarter, compared with an increase of 6.74 million in the same period last year. It failed to meet the average increase of 5.32 million expected by analysts surveyed by FactSet, and was also lower than the company's own expectations. The increase of 5.2 million people. Among them, the number of new users in the United States was 1.42 million, compared with an increase of 2.23 million in the same period last year; the number of new international users was 3.53 million, compared with an increase of 4.51 million in the same period last year. As of the end of the first quarter, Netflix's total number of users reached 98.75 million.

Netflix shares fell $0.15, or 0.09%, to close at $163.07 in regular trading on the Nasdaq Stock Market on Wednesday. In the past 52 weeks, Netflix's stock price has dropped from $84.50 to $164.75. Based on Wednesday's closing price, Netflix has a market value of approximately $70.3 billion.

Editor: jessica