Streaming giant is increasing spending in a bid to attract new subscribers
Netflix is planning to spend a massive $6 billion (£4.9 billion) on new content next year, says a new report.
This sum will be spent on original series such as Stranger Things and House Of Cards. It will also fund new additions to its library of films and classic TV shows.
BuddFeed News reports that the spending drive is part of the streaming giant’s strategy to improve its relatively slim profit margins.
The company’s CEO Reed Hastings is quoted as saying: “With more revenue, we can reinvest to further improve Netflix to attract new members from around the world, while continuing to delight our existing customers”.
News of the hefty spending plan follows a recent report which claims Netflix is planning to make some content available to watch online.
Having ruled out the possibility of offline playback in 2014, CEO Reed Hastings spoke more encouragingly about offering viewers this option in April, saying the streaming service should “keep an open mind” about it.
Now industry insider Dan Taitz, a senior figure at Penthera, a company that specialises in software which enables video content to be downloaded to smartphones, has told Light Reading that Netflix has revised its opinion on offline playback.
“We know from our sources within the industry that Netflix is going to launch this product,” he said. “My expectation is that by the end of the year Netflix will be launching download-to-go as an option for their customers.”
Another industry expert pointed out that, depending on its various licensing agreements with TV networks and film studios, Netflix may not be able to make all content available offline. However, original series such as Stranger Things and Orange Is The New Black should be safe bets for the rumoured download-to-go service.
A Netflix representative has said coyly in response to the report: “While our focus remains on delivering a great streaming experience, we are always exploring ways to make the service better. We don’t have anything to add at this time.”