Entertainment

Netflix Set To Spend $17 Billion In 2020

Published

2 years ago

July 4, 2022

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Netflix

To counter competition from Amazon, Apple, Hulu, Disney, HBO and now NBC, which is about to launch its streaming service called Peacock, Netflix has decided to go all out.

In 2020, the platform plans to spend a staggering $17.3 billion, according to investment bank BMO Capital Markets. That’s $2 billion more than in 2019. And the U.S. giant doesn’t seem to want to stop there, since, again according to BMO, its budget could reach $26 billion in 2028.

To win this fierce streaming battle, Netflix will continue to focus on original content. In 2019, the platform produced 802 hours of original content, including Oscar contenders The Irishman and Marriage Story. A record. And the platform intends to continue to build on this record by devoting the majority of this colossal budget to the production of original content.

For their part, HBO Max and Peacock have budgeted $2 billion for home-grown productions, while Disney+ will devote “only” $1 billion to them. But there is a flip side to the coin, and for Netflix, it is the amount of debt incurred to carry out its strategy, which currently stands at $14.6 billion.