It’s safe to say that Netflix’s push into original content has been an immense success, and the company has been putting tons of resources into pushing out as much premium content as it can. In fact, the company wants to surpass HBO in that regard by pouring somewhere around $5 billion into content next year, which includes both original content and licensed content from traditional television networks.
We always like to talk about how Netflix is ‘doubling down’ on original content, but truth be told, that doesn’t really capture the full scope of Netflix’s programming objectives. Netflix doesn’t just want to increase the breadth of its original content, it wants to completely dominate the premium original content space and completely dethrone HBO in the process. In 2016, Netflix is planning on spending $5 billion on content, a figure which includes a mix of traditional TV and movie licensing costs and wholly original content. To put that figure into perspective, Netflix in 2013 spent $2 billion on content. With Netflix seemingly spending every spare dime it has on content, the company is particularly sharpening its focus on original content. Indeed, popular programs like House of Cards and Narcos only serve to further differentiate Netflix from rival streaming services like Amazon Prime and Hulu. Indeed, a renewed focus on original content is precisely why Netflix had absolutely no qualms about letting its movie deal with Epix expire, losing thousands of films in the process, including popular titles like The Hunger Games: Catching Fire.