March 21, 2019
As expected, Netflix is spending more on original content than licensing third-party programming. While Netflix senior management has long championed original vs. licensed fare as evidenced by its indifference toward Disney’s decision to withdraw first-run movies from the streaming service – now there’s data to prove it.
London-based Ampere Analysis found that 51% of domestic programming was original (proprietary and exclusive from studio partners) through the end of 2018 – up from 25% at the end of 2016. The research firm contends 30% of Netflix original content is studio based.
“Netflix’s strategy is clearly moving towards a self-sufficiency model,” analyst Lottie Towler said in a statement. “Its focus on growing the proportion of original content in its catalog shows no sign of slowing down – in fact Ampere’s analysis shows the streaming giant is reaching a point where it produces almost all the new and fresh content, while only the older content is licensed.”
In December 2017, more than 3,000 titles available on Netflix U.K. were available in more than 15 Netflix markets worldwide. In December 2018 the tally had increased by 1,600 titles.
“I’d say the vast majority of the content that is watched on Netflix [is] our original content brands,” CCO Ted Sarandos said on the fourth-quarter fiscal webcast.
Ampere contends Netflix’s focus on proprietary programming will help the streamer when episodic content producers such as Disney/ABC Television, Warner Bros. Television and NBC Universal pull back popular shows such as “Grey’s Anatomy,” “Friends,” and “The Office,” among others.
“This will position Netflix well in the market should other major studios follow in the steps of Fox and Disney and pull their content from SVOD services in advance of launching their own [direct-to-consumer] offers,” Towler said.