Netflix, once simply known as a video rental service that sent you DVDs in the mail, has grown into a huge player. It’s wide range of original content, from shows to movies to documentaries to comedy specials, has actually become the company’s biggest selling point- as opposed to the old days when they were merely a middle man between you and the studios. And they want to give you more homegrown entertainment to peruse. Much, much more. And while that’s cool, it’ll definitely come at a price.
During an investor conference call, Netflix CFO David Wells said that the streaming network wants to eventually get to a place where half of its lineup will be comprised of original content.
“It will take us a couple more years [to get there],â€ Wells said. â€œWeâ€™re a third to halfway to where we want to be. Weâ€™ve got a ways to go.“
That said, Wells says the process of getting there will take time and will take a considerable financial investment. You know what that means…
“We can raise [prices] slowly over time,â€ Wells said, while mentioning that they may move to a having differentiated tiers of service. Wells also revealed that â€œwe face pressure from investors that weâ€™re underpriced.”
It’s hard to argue that Netflix hasn’t become a destination for great original content. Just look at a few of their hit original properties:
- Stranger Things
- Jessica Jones
- House Of Cards
- Orange Is The New Black
- Beasts of No Nation
- Making A Murderer
- Unbreakable Kimmy Schmidt
There are many more I could mention, but the point is clear: Netflix knows how to pick and support projects.
So the question becomes: What price are you willing to pay as the network continues to expand? What’s your ceiling?