advertisement
advertisement

Wait, Netflix spends how much on content now?

You didn’t think Netflix brought you Stranger Things, Master of None, House of Cards, and all those other great shows for free, did you? In fact, one of the big concerns right now for Netflix investors is that maybe it’s spending a little too much on content—even though those expensive high-quality original shows are vital … Continue reading “Wait, Netflix spends how much on content now?”

You didn’t think Netflix brought you Stranger Things, Master of None, House of Cards, and all those other great shows for free, did you? In fact, one of the big concerns right now for Netflix investors is that maybe it’s spending a little too much on content—even though those expensive high-quality original shows are vital to the company’s success. With content spending expected to hit $6 billion this year, Netflix is far outspending its main streaming rivals, Hulu and Amazon

advertisement

But according to a new research note from Morgan Stanley, there’s a bright side. When content expenses are measured in terms of per-hours viewed on the platform, Netflix is actually getting a better bang for its buck than it has in the past, at least domestically. It’s expected to spend around 7 cents on content per hour viewed this year, compared to almost 14 cents in 2012. So as Netflix gets bigger, it’s getting more efficient—which in the business world is a stranger thing all its own.

[Images: Morgan Stanley]

advertisement
advertisement

About the author

Christopher Zara is a senior staff news editor for Fast Company and obsessed with media, technology, business, culture, and theater. Before coming to FastCo News, he was a deputy editor at International Business Times, a theater critic for Newsweek, and managing editor of Show Business magazine

More