Over the past few years, Netflix has spent every spare dollar it has on developing original content. Hardly a surprise, Netflix is releasing new content at such a pace that it’s literally impossible to keep up. As a quick and recent example, Netflix just last month released 54 original TV shows. Of course, developing original content and licensing existing comment is anything but cheap. In fact, by the time 2018 draws to a close, Netflix late last year indicated that it may spend as much as $8 billion on procuring content for its growing base of users.
All that said, it appears as if Netflix is looking to spend some of its cash on old-fashioned advertising. According to a new report from Reuters, the streaming giant recently made a bid of $300 million to acquire Regency Outdoor Advertising, a billboard company with a strong presence across Los Angeles.
The report reads in part:
Netflix’s motivation was not immediately clear, but it could save money over time with the deal, according to industry analysts, as it ramps up spending on marketing for its original shows and movies to $2 billion this year. Netflix used Regency Outdoor billboards to promote its “Stranger Things” and “The Crown” drama series.
As noted above, Netflix seems to have a penchant for billboard advertising. You might recall that the company also plastered billboards in New York City and LA with “Netflix is a joke” messages as part of a clever marketing campaign designed to highlight the company’s growing arsenal of stand-up specials.
Netflix’s interest in Regency Outdoor Advertising shouldn’t come as much of a surprise given that the company may spend as much as $2 billion on advertising throughout the year. Interestingly enough, Netflix CEO Reed Hastings, in an ideal world, wouldn’t have to spend money on traditional ads.
“Our sort of Holy Grail dream is that the service was so good at promoting the new content in such relevant ways that we wouldn’t have to spend externally,” Hastings said a few months ago.