Hollywood 2018: Netflix to Spend $8 Billion for New Content

Netflix will spend around $8 billion on content in 2018 for making about 700 original TV shows and movies on the service, according to CFO David Wells.

The large content is driving up the subscriber base, said Wells, speaking Tuesday at the Morgan Stanley Technology, Media & Telecom Conference. The “700-range” figure includes 80 original productions from outside the U.S.

The company’s strategy continues to be, “Let’s continue to add content — it’s working, it’s driving growth,” Wells said.

How much content?

Wells said that “there’s no magic line where you know exactly where you are” in terms of efficiency.

There’s “no religion” at Netflix about the source of programming, although the company increasingly intends to produce its own content. “People don’t care where the stories come from,” he said. “We’re about having the best content. We don’t necessarily have to do it ourselves.”