Data presented by Bankr estimates that Netflix will spend about $19.03 billion on video content in 2021. The budget has been increasing yearly since 2013.
Netflix focus on original content to increase video budget
The 2021 amount will be an increase of about 10% from $17.3 billion spent in 2020. In 2013, Netflix’s video content budget was $2.4 billion which grew by 104.16% in 2015 to $4.9 billion. By 2017, the budget stood at $8.9 billion, a growth of 81.63% from 2015.
The 2017 budget grew by 35.28% to $120.04 billion in 2018 and 2019, the figure stood at $15.3 billion, a growth of 27.07% from the previous year.
The Bank explained factors that point to an increase in Netflix’s video content budget for 2021. According to the research report:
“The projection is attributed to factors like the company’s focus to produce more original video content as detailed in the investor letter for the 2020 Q3. Producing Netflix originals requires more cash upfront. Over the years, Netflix routinely raises debt to fuel content spending on originals. Since Netflix launched its first original series in 2013, the streaming service has put its original content front and center with significant budget allocation.”
The research also overviewed the number of Netflix paid subscribers globally from 2011 Q3 to Q3 2020. Over the period, the subscribers have grown by a staggering 807.67%. As of Q3 2011, the figure stood at 21.5 million while in 2020, the number is at 195.15 million.
Netflix surpassed the 100 million paid subscribers to mark during Q3 2017 when the figure stood at 104.02 million from the previous quarter’s 99.04 million subscribers.
The research also highlights factors that contribute to Netflix increasing paid users across the globe. The research notes that:
“Furthermore, the company is reportedly lining up a higher budget on originals from the Asian market. After successfully producing shows like the Korean zombie period thriller “Kingdom” and reality series “Indian Matchmaking,” Netflix seeks to make a mark in a region and match up the competition. Notably, the region is witnessing a growth in subscribers.”
