Netflix’s Amortized Content Spending to Rise 26% to $13.6 Billion in 2021, Analysts Project

Netflix’s Amortized Content Spending to Rise 26% to $13.6 Billion in 2021, Analysts Project
After Covid stalled nearly all productions last year, Netflix is expected to boost content spending on an amortized basis by a healthy 26% in 2021 to $13.6 billion — and the streamer’s budget could hit $18.9 billion by 2025, as it increasingly shifts the mix toward originals.

That’s according to the latest estimates from S&P Global Market Intelligence’s Kagan media research unit. The analyst group’s forecast of Netflix amortized spending of $13.60 billion in total content costs this year includes $5.21 billion for originals (or 38% of the total).

By comparison, Netflix’s amortized content spending was $10.81 billion in 2020 and $9.22 billion in 2019, according to Kagan. On a cash basis, Netflix has told investors it expects to spend $17 billion this year on content.

Ever since Netflix first entered the originals market in 2011, it has steadily ramped up originals spending — anticipating studios would hold back TV shows and movies for their own streaming platforms. In 2014, about
See full article at Variety »

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