New record: This is what Netflix will spend on new content in 2020
However, the streaming provider has not been able to pay the many billions by itself
In 2019, Netflix spent approximately 15.3 billion US dollars on new content. This includes not only films like The Irishman but also reality and stand-up formats that were very well received last year. This year, the investment volume is expected to increase again, to a solid 17.3 billion US dollars. However, Netflix does not simply have this money on its own, but has to borrow it. According to various analysts, Netflix already has 13.5 billion US dollars in debt at the moment, not including this year.
But you can also see very clearly where all the money is going, because in the last quarter of 2019 Netflix released over 800 hours of original content - including The Irishman, 6 Underground and The Witcher. All of this investment is of course aimed at maintaining Netflix's status as the most popular streaming platform - not surprising with mega- competitors like Disney+ or Amazon Prime Video.
In comparison, Disney+ will only invest about one billion US dollars in new content this year. Compared to Netflix, this is a negligible amount. However, Disney has the great advantage of already having many world-famous films in its pool.
By the way, Wall Street analysts at BMO Capital Markets expect Netflix' spending to increase steadily every year for the next six years - will this help Netflix maintain its supremacy? We will see.