At the moment, it already seems that Netflix is bursting with not only original content, but with movies they’ve signed up to distribute (the streaming service just walked out of TIFF with deals for “Tramps” and “Barry“). However, their emphasis these days is on the former, and you can expect in the years to come that when you login to Netflix, you’re going to be seeing much more of their own programming.
Speaking at the Goldman Sachs Communacopia Conference, Netflix CFO David Wells revealed that the company is aiming for 50% of their content to be original programming. However, he admits, they’ve still got a very long road ahead, noting they are only “one-third to halfway” of meeting that target. But unlike their rivals on more traditional television or operating under Hollywood moviemaking models, Wells stresses that the idea is to have something that will appeal to every individual subscriber, and that ratings or having a hit isn’t always the endgame. (So, expect just as much “Fuller House” as “House Of Cards” — they aren’t just concerned with having prestige content).
“We don’t necessarily have to have home runs… We can also live with singles, doubles and triples especially commensurate with their cost,” Wells said. Of course, it doesn’t hurt when everyone is talking about something like “Stranger Things” — that only helps in bringing in potential new subscribers.
And at the end of the day, that’s what it’s about for Netflix — subscribers. The more they have, they more money they can add to their warchest of billions of dollars for original programming, and continue to differentiate themselves from the rest of pack. There’s little value in licensing TV shows and movies that audiences can watch elsewhere; Netflix sees the key to their ongoing success in creating content that their customers simply can’t get anywhere else. And if you’re wondering whether or not Netflix will add to their bottom line by adding commercials on the service (a persistent rumor) that’s not part of the game plan.
“…there’s no immediate plans for an ad-supported product… The Netflix brand stands for no advertising,” Wells stated.
So, with Amazon, Hulu, Crackle, and whoever else joining the fray and trying to bite into Netflix’s business, better have some very deep pockets. [Variety]
