Netflix CEO Not Worried About Big Spending
Last updated July 8, 2021
- Netflix CEO Reed Hastings believes the streaming giant isn’t spending enough.
- Netflix is about to spend $8 billion on new and exclusive content as well as renewals of successful original series in 2018.
- Hastings believes the company needs to spend more to continue competing against Amazon and Disney.
Making original content is high on Netflix’s priorities as the streaming behemoth is all set to invest over $8 billion into original content for 2018. The investment will be used to create new and original content as well as renew successful series under the Netflix banner. Netflix CEO Reed Hastings believes the brand needs to spend even more to stay relevant in the competition.
Hastings was present at the 2018 TED conference, and he admitted that despite Netflix pumping billions into creating content, they believe there is much more to be done. Amazon is already competing aggressively against Netflix with Prime Video. Disney is about to rival Netflix with a new streaming service on the horizon.
“There are so many great shows on other networks, so we have a long way to go,” said Hastings, clarifying the money wasn't actually as that big a deal as it's "spread globally, so it’s not as much as it sounds.”
Image Courtesy Netflix
Hastings added, Netflix has no plans of heavily increasing the number of original shows produced. They want to continue focusing on quality, and they are metacognitive about it. The brand is trying to bring more variety to the table for the audience. They also want to compete against big-name brands like HBO and Disney to keep producing high-quality shows and movies.
Netflix is taking steps to ensure the money is spent in the right places. Netflix has an algorithm to collect user data designed to help the brand know what they need to produce next. Netflix plans new content based on content viewing trends instead of just ratings provided by viewers.
Netflix does not compartmentalize as a company like Apple does. All decisions are informed transparently to allow the brand to have clear goals and benchmarks. The Netflix CEO mentioned more decisions are on the horizon for the company this year.
Netflix recently shunned the Cannes Film Festival due to France’s streaming laws that restrict content. The brand is not afraid to tackle Hollywood with big budget movies like Bright directly making it into the streaming service instead of hitting the silver screen.
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