According to some official reports, popular streaming company Netflix Inc. just increased the budget for its content for the upcoming year by at least $1 billion. So, in 2018, the streaming service will have a budget of over $7 billion. Those plans were revealed in a Monday third-quarter letter to its shareholders. Netflix said that it’s planning to spend somewhere between $7 and $8 billion only on content next year, as opposed to only $6 billion, the amount of money it spent this year.
Moreover, over the next few years, the company is planning to expand its original content and will reportedly spent about $17 billion in accomplish this purpose. According to that same letter, its future plans are largely based on original content, which seems to attract users and excite them. Also, Netflix is doing and will continue to do everything it can in order to satisfy the tastes of its enormous user base.
Netflix is all business
As for the third-quarter results, the numbers in that Monday letter are exciting. The streaming service had very good results over this time span while even adding an additional 5.3 million users. This more than surpassed the analysts’ predictions. On Wednesday, shares on the company grew by about 1.9%. As for the stock, it saw a surge of 64% only this year.
And it seems like the company has some very well-thought out plans for the future. It will use part of the revenue that will come from the recent increase of prices. Then, it will redirect it to original content. So, from now on, those who are members of the standard service will have to pay $11 per month. A $1 increase. As for their premium service, members will have to pay $14 each month, up from $12.
Preparing for the future
However, Netflix is not expecting anything spectacular. Especially when it comes to new users from the United States, after this price increase. Still, the number of international subscriptions should increase steadily. According to the letter, in time, this price increase will be reflected in the qualitative original content. In the third quarter, Netflix introduced a lot of original series, among them being Ozark and Friends from College. All in all, it seems like the popular streaming service is not stopping here. It wants to slowly, but surely, conquer the world.
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