“Go hard or go home”. Or so the saying goes. When it comes to Netflix this seems to be more pertinent than ever.
The company has just reported its biggest quarter ever with a record 7.05 million subscribers now watching worldwide and a net worth of $60 billion. The reason? Original content and total market domination.
Go hard or go home. Netflix have just reported staggering growth figures for 2016 – the reason: millions of dollars poured into original content.
A report from Netflix has revealed some staggering figures for the company’s growth. The 7.05 million subscriber figure is almost 2 million more than the company predicted for the end of 2016.
Netflix announced the service was avaliable in 190 countries as of 2016. Already, 47 percent of its subscribers live somewhere other than the US.
Sales, too, rose 36% over the same period last year, climbing to $2.48 billion. Shareholders boosted Netflix stock 8 percent to an intraday high of $143.46 last Thursday, just a day after the report dropped.
The driving force behind these mammoth figures seem to be Netflix’s endeavour to create excellent original content – pouring an insane amount of cash into shows like Stranger Things, House of Cards and Narcos.
“There seemed to be an attitude around the industry that after House of Cards and Orange is the New Black, there was no way Netflix could catch lightning in a bottle again,” says Glenn Hower, a senior digital media analyst with research firm Parks Associates. “Well, after cranking out more hits like Luke Cage, Stranger Things and The OA, it looks like the streaming giant really knows what they are doing in the content creation space.”
In 2016, Netflix spent $5 billion on original shows. Five of the 10 shows people searched for most often last year are Netflix originals, company officials said, citing Google data during an earnings call.
Looking forward, Netflix plans to spend $6 billion creating 1000 hours of new content this year, more than doubling its 2016 lineup. At this point, it’s clear Netflix isn’t just a streaming service anymore. “For many millions of consumers around the world, Netflix has already become television,” says Tony Gunnarsson, a television analyst with Ovum.
Go hard or go home. Damn right.[via Wired]