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Netflix’s content bill matches TV and premium channels

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Netflix’s content bill matches TV and premium channels

Post by sanjay kumar » Tue Jan 10, 2017 5:14 pm

... It’s no secret that the major subscription video on demand platforms Amazon and Netflix have rapidly increased their content spend, reaching similar levels to traditional TV groups.

But Netflix’s content spend is now comparable to a premium channel group or platform, marking a re-focus of the company’s overall strategy. With original content also central to success and a catalogue refinement underway, Netflix is repositioning as a premium channel play.
Daniel Gadher, Analyst at Ampere Analysis says: “Netflix’s growth has relied heavily on geographic expansion to date, but, with its global launch, that road has now run out. Increasingly, Netflix is re-engineering as a premium channel play and its content spend, as well as the refinement we are seeing in its content catalogue, reflect this. Netflix is clearly re-positioning as a premium channel in a strategy that differs considerably from that of Amazon. This duality of approaches will see the two operations increasingly carve out parallel but separate niches.”....