Netflix Spends 85% of its Money on Original Content

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Differentiating its local original content from that of local broadcasters will help Netflix succeed in what he termed "a television starved market", speaking at the MoffettNathanson Annual Media & Communications Summit in NY.

The streaming platform is all set to release its original production "Sacred Games" on 6 July featuring film stars Saif Ali Khan, Nawazuddin Siddiqui, and Radhika Apte. Whether it was movies or shows that had already made a name for themselves, Netflix snapped them up and hid them behind a fancy recommendation algorithm, serving up the ones it felt were right for you.

Originals are the bulk of Netflix's content budget now. "So that's how we're trying to invest in that market is not trying to go into the market and replicate what's on television, kind of like, what I told you about global and bring something new to the market", he noted.

The US based company now faces stiff competition from Hulu, Amazon Prime and will also have to watch out for Disney's own streaming service, reportedly slated to debut next year.

As Variety reports, the streaming service hopes to have 1000 original shows on Netflix by the end of 2018, with 470 of those shows premiering between now and the end of the year.

Speaking at a MoffettNathanson media conference on Monday, Sarandos said that 85 percent of Netflix's new spending on content is going toward the company's own original works.

With hit Netflix originals like Stranger Things and The Crown returning in 2019, there are more than enough open weekends for Netflix original programming throughout the rest of the year.

"Netflix's originals slate for 2018 includes 80 films, ranging from "sub-indie" low-budget pictures to "$100 million blockbusters". Sarandos also said that he was surprised it took so long for other companies like Disney to jump into the streaming business, and said that Netflix still has no plans for live sports or news.