As more streaming platforms launch and become an increasingly familiar entertainment option for customers, an analyst has said Netflix will spend around $17bn on content in 2020.
Dan Salmon of BMO Capital Markets forecast that the streaming platform will spend more than $26bn by 2026 as it forges ahead in its mission to make itself as attractive as possible to current and potential global subscribers.
It is understood a large part of the focus will be on original content as the platform strives to differentiate itself from other services.
Netflix carries approximately $13.5bn in debt, which has prompted questions about how it will continue to grow. Screen understands there are no immediate plans to introduce advertising revenue to the business model, however Netflix has been known to pivot rapidly in its strategy.
Salmon also noted there will be room for multiple platforms to prosper. Apple TV+ and Disney+ commenced operations late last year, while HBO Max is scheduled to launch in May, and Comcast’s Peacock service in April.
According to reports, HBO Max plans to spend $2bn on content this year, and Peacock the same amount over the first two years. Disney has allocated $1bn for original content on Disney+ this year.
Netflix will report fourth quarter 2019 earnings on January 21.