Netflix Announces $ 19 billion 2021 Production Spend

Netflix Announces $ 19 billion 2021 Production Spend. image: Wikimedia

Netflix Announces $ 19 billion 2021 Production Spend.

Netflix, a global leader in the streaming market, intends to retain its title and for this, the American company does not hesitate to put money on the table to produce films and original series, even if it means going into ever more debt. A policy that Netflix will continue to follow in 2021 since, according to data collected by the Dutch investment band Bankr, the video-on-demand (VOD) service plans to invest a staggering $ 19.3 billion in exclusive productions, a record amount for the company.

The 2021 budget allocated to original productions will be 10% larger than that of 2020 ($ 17.3 billion). A trend that has been observed for several years. Netflix had already invested $ 4.9 billion in 2015 for its own productions. However, the American platform now relies heavily on exclusives to attract new subscribers, but also to retain them in the long term. Generally speaking, across the industry, original productions are a growth engine for VOD services.

This business model is a bet that has paid off in the case of Netflix since the streaming platform continues to attract new subscribers. It had more than 195 million subscribers in the third quarter of 2020, according to figures from Bankr.  In 2019, the streaming platform had negative cash flow of $ 14.4 billion. And while the coronavirus pandemic has certainly helped Netflix attract new subscribers, it’s hard to imagine its debt has eased significantly.

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Tony Winterburn

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