The big picture: Netflix has developed a reputation for spending an exorbitant amount of money each year to keep its original content machine running at full tilt. In 2020, the streaming video giant has no plans to deviate from that strategy.
According to a new estimate from BMO Capital Markets, Netflix will funnel $17.3 billion into original content production in 2020. That’s a full $2 billion more than the $15.3 billion it spent in 2019, a year that turned out some great entertainment including The Irishman, The Witcher and Russian Doll as well as new seasons of Black Mirror and Stranger Things, just to name a few.
Spending is only expected to ramp up as the years tick by. BMO estimates that by 2028, Netflix will be dumping around $26 billion annually into its original content generator.
Netflix was mum on the subject when probed by TheWrap for comment but don’t expect the company’s lips to remain sealed too much longer as its fourth quarter 2019 earnings report will be released after the markets close on January 21. We’ll likely get some fresh commentary on the subject during the call with investors.
The New Year won’t deliver any obvious favors for Netflix, either, as a swath of newcomers have recently entered the mix including Apple TV+ and Disney+. NBC is also expected to launch its Peacock streaming service in the near future, and don’t forget about HBO Max.