Yesterday we learned that in the United States, Netflix added 1.09 million new subscribers and 3.91 million internationally. These new subscribers brings Netflix total subscribers to 137 million a userbase that is only behind YouTube’s 192 million when looking at streaming services. In the world of paid streaming services, Netflix has a huge lead over Amazon’s 88.7 million and Hulu’s 55 million according to eMarketer.
Now Netflix says they plan to spend $8 billion this year on new content. That brings Netflix total spending on content up to $12 billion far more than Amazon, Hulu, or even HBO is spending right now. That is likely just the start of Netflix spending as they recently agreed to buy a movie studio to help Netflix expand their original programming.
“Netflix’s strong quarter will at least temporarily put to rest questions over the long-term viability of its business and shift focus to the competition, which continues to significantly lag the streaming giant. Netflix added nearly 7 million subscribers in the quarter, easily beating its estimates – and Wall Street expectations – of 5 million. Further, it issued aggressive guidance for Q4 2018, saying it expected an additional 9.4 million subscribers. These positive results come as head-to-head competitors like Amazon and Hulu are ramping up their content investments, and as companies including Disney, AT&T, and Walmart are teeing up their own direct-to-consumer subscription services. However, given Netflix’s longtime leadership and extensive content library, competitors will be hard-pressed to build streaming businesses that can aspire to become market leaders.” Said eMarketer media analyst Paul Verna.
So what do you think of Netflix plans to spend $8 billion on new content? Leave us a comment and let us know what you think.
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