Netflix, Inc. (NFLX) is going to spend $3 billion on new content
Netflix, Inc. (NASDAQ:NFLX) is going to spend $3 billion on new content. Even though, Netflix is dealing with a rise in costs regarding international rights, the company made a profit of $112 million in 2013. This is why the company is spending billions of dollars to expand their TV and film content.
Netflix reported in their annual report that they have spent almost $7.3 billion on program license agreements, which will be paid over a period of three years. Netflix reported $4.3 billion in 2013 revenues, which is an increase of 12% from 2012.
“We expect to significantly increase our investments in international expansion, including substantial expansion in Europe in 2014, and in original content,” said Netflix in an SEC filing. Netflix will be expanding their services in France and Germany in 2014.
This budget includes the continued production of original content. Some of Netflix’s original programs include Orange Is The New Black, House Of Cards, and Arrested Development Season 4. Netflix releases entire seasons at once, which many of their viewers watch in the same day. The second season of House Of Cards recently debuted.