Netflix has long been tired of fighting with content owners to get rights to stream shows on Netflix. A few months ago Netflix announced plans to make half of its catalog Netflix-owned original shows and movies.
This move will allow Netflix to have more control over its content and not have to count on partners who keep pulling rights to shows. How can Netflix fund this $1 billion investment in new content?
Rather than raising prices it seems that Netflix has decided to work with international backers to raise $1 billion in new investment. This billion will go to continued production of new Netflix original shows and movies.
The importance of Netflix original content hit home recently as FOX started to pull its shows from Netflix. Recently a long list of FOX shows such as The X-Files and Bob’s Burgers have started to vanish from Netflix. With this trend likely to continue it seems that the investment in new original content is a smart move for Netflix.
The question now is can Netflix keep up this pace of spending $1 billion on new original content year in and year out.
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