Netflix Expected to Continue to Outspend its Rivals for Programming in 2016
Subscribers to streaming services want new content. Netflix knows this and is greatly outspending all of its rivals to keep their subscribers and lure more in with more and more content. Janney reports Netflix could spend up to 5 billion dollars on programming in 2016.
What’s impressive about the 5 billion figure is that unless Amazon greatly increases their programming spending, it could be double what Amazon spends on programming in the same time period. Business Insider collected data on how much companies spent on programming in 2014. In their results Netflix spent double what Amazon did on programming with HBO coming in between the two streaming giants. Hulu, Showtime, and Starz came in after Amazon in programming spending.
Janney noted in their report that if Netflix spends as much as is projected on content in 2016 they would come second only to ESPN as content buyers. This huge outpouring of money could make it harder and harder for other companies to compete with Netflix’s streaming catalog.