January 16, 2020
Go big or go home. That appears to be the motto at Netflix when it comes to original content spending.
New data from BMO Capital Markets contends the SVOD behemoth will spend about $17 billion on original content this year, up $2 billion from 2019. Netflix ended the third-quarter (Sept. 30, 2019) with more than $24 billion in long-term debt to bond holders and third-party content producers.
By comparison, NBC Universal’s pending Peacock streaming service reportedly will spend upwards of $2 billion on original content in 2019. HBO Max and Disney+ are spending from $1 billion to $2 billion on content this year.
“We continue to believe the ‘streaming wars’ narrative is false and there will be multiple winners in global streaming,” analyst Dan Salmon wrote in a note. Indeed, BMO remains bullish on Netflix with a “buy” rating on the stock.
In Q3, Netflix launched 802 hours of original programming, including Golden Globes winners and Oscar contenders The Irishman and Marriage Story.
“We continue to believe Netflix will hit or exceed its U.S. paid net add guide,” John Blackledge, analyst with Cowen & Co., wrote in a separate note.
Netflix reports fourth-quarter fiscal results on Jan. 21.