Netflix shares open lower amid streaming giant's originals release plans

Ted Sarandos Netflix

Ted Sarandos Netflix

Netflix has already announced it intends to spend $8 billion on original content during 2018, although that figures includes TV series as well as films.

The aggressive strategy is aimed in part at addressing complaints that the service's movie library is stale, an issue likely to be exacerbated by Walt Disney's decision to stop supplying Netflix with new films for its US customers in 2019.

Worldwide Netflix lovers will have a gala time as the content provider will launch 1000 originals on its platform by the end of 2018. The company's chief content officer said the company will reach 1,000 shows by the end of 2018. That's more than the combined total of planned releases among the top four movie studios and will beat the 61 films Netflix released in 2017.

Netflix's heavy investment in its originals certainly appears to have paid off so far.

The company also said that there are still almost 470 shows to be released this year alone. They claim to be averaging 9 million viewers per film.

The decision to ramp up its original films production is no secret and has been oft mentioned by the Netflix management. Eight or more will be in Spanish.

Sarandos revealed on Monday that more than 90% of Netflix users regularly watch its original programming, so it's hard to see how the strategy of making its own content could go wrong, beyond simply churning out too much content at expense of quality.

Netflix plans on producing and purchasing movies from several genres, including teen dramas sci-fi adventure and horror.

"The creators we're talking to, they watch Netflix and they want to be on our network", Ted said, Via NY Post.

Speaking at the MoffettNathanson Media & Communications Summit 2018 in NY on Monday, Sarandos said that 85% of new spending will go toward original content in 2018. The company's most ambitious movie gamble to date is "The Irishman", the coming De Niro and Pacino film directed by Martin Scorsese.

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