Netflix has gone full throttle into producing its own original shows and movies, which the company has characterised as the most important part of its future.
Netflix will put out a staggering 600 hours of original content in 2016, and it’s showing no signs of slowing production in 2017 and beyond.
Indeed, analysts at UBS think that Netflix’s spending on original content will climb up and up, adding billions upon billions, even as its spending on licensed content remains flat.
Just how drastically will that affect Netflix’s catalogue in the next few years?
Take a look at this chart UBS sent in a recent analyst note:
Here you can see that as the spending on licensed content flatlines below $4 billion, while the spending on original continues to climb past $9 billion. Netflix has said it will spend about $5 billion total on content in 2016 (as the chart shows).
So expect much more “House of Cards,” “Stranger Things,” “Making a Murderer,” and whatever else Netflix has cooking up.
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