As far as Netflix is concerned, the company’s overarching business philosophy rests on releasing more content than most people can practically keep up with. In furtherance of this philosophy, Netflix isn’t afraid to spend big bucks in order to buy compelling content, and of course, develop an increasingly impressive stable of original programming. What’s more, Netflix is also honing in on the movie business as well.
Highlighting Netflix’s addiction to content, the streaming giant this week announced its plan to spend upwards of $8 billion on programming in 2018, a marked increase from the $7 billion it initially projected a few months back. So while Netflix does face increased competition from the likes of Hulu and Amazon, the reality is that no one company has been willing to spend as much as Netflix in an effort to attract new customers.
This dynamic, however, may change in the near future. According to a new research note from analyst Michael Nathanson (via Fast Company), Netflix’s growing influence within the media industry is prompting traditional media companies to think twice about licensing their content to the streaming giant. What’s more, some media companies are increasingly starting to look at outlets like Hulu as viable alternatives to Netflix. In doing so, they still get paid while still managing to dilute the growing power Netflix seems to wield.
Disney recently made headlines for its decision to pull its content from Netflix and launch its own streaming service, but it’s far from the only network to think like that. Per MoffettNathanson, “FOX has been a much bigger source of the off TV hits on Netflix … and their titles are in the midst of shifting.”
On a related note, Netflix recently lost two of its more popular shows — 30 Rock and How I Met Your Mother — to Hulu.
Nathanson later adds that if Hollywood starts playing hardball with Netflix, the company will have to focus more on original programming, a venture that by its very nature costs more money. While true, the reality is that Netflix has never been afraid about spending its own money on original programming. If anything, it’s a future that Netflix embraces. Though not likely to happen anytime soon, Netflix’s ultimate goal is to have a library of content wherein 50% of the available titles are all Netflix originals.