Netflix reportedly has offered $300 million to acquire Los Angeles-based billboard company Regency Outdoor Advertising. The offer is among several for the company that owns billboards across LA County, including Sunset Boulevard, Dodger Stadium and Los Angeles International Airport, according to CNBC, which cited sources familiar with the situation.
The move comes has the SVOD behemoth increases marketing spend in 2018 to $2 billion in support of 700 original programs, including 80 feature films, on content spending of $8 billion. Netflix has advertised original programing on Regency billboards, including series, “Stranger Things,” Will Smith fantasy action movie, Bright and “The Crown,” among others.
In its most-recent shareholder letter, Netflix alluded to increasing competition from deep-pocket rivals Amazon, Disney and Facebook upping content spend and presence in over-the-top video.
It said the movie Bright, which co-starred Joel Edgerton, was its most expensive production to date, but also yielded the highest number of new subscribers. Netflix ended 2017 with more than 117 million subscribers globally.
“As the marketplace for original content becomes more crowded, Netflix is turning up the volume to promote the increasing number of Netflix originals,” MoffettNathanson analyst Michael Nathanson wrote in a note.