Netflix’ chief content officer Ted Sarandos says that almost 85 percent of Netflix’s new spending is being used for original TV shows, movies, and other productions. It has been very profitable for the company as they have given viewers some top quality content.
It expects to spend $8 billion on content, but we don’t know how much of that $8 billion will be used for licensing costs vs spending on original content.
Sarandos did mention that Netflix is going to have around 1,000 original titles in its library by the end of the year with 470 of these titles premiering between now and the end of the year. More than 90 percent of Netflix’s subscribers watch its original programming, so it is a move which will pay for itself in the long run.