Netflix Looking To Significantly Invest In Original Shows

Streaming provider Netflix are currently keeping both investors and subscribers very happy, but they are not resting on their laurels The US company have revealed that they are raising some $400m to fund both original programming as well as to help finance further expansion into Europe.

netflix-original-content-costNetflix have already had enormous success with originally produced content such as House Of Cards, Hemlock Grove and Orange is the New Black. And the company say they expect to, “substantially increase” investment in making even more.

Netflix are also looking at new territories to conquer, and it is expected to land in both Germany and France later in the year. Content has now become all important as top TV shows command big money to syndicate and Netflix are open to be outbid.

The answer for Netflix is to make more and more shows that they own and have full control of distribution. But buying up existing content is still the main source of content and Netflix will be spending $3 Billion on content for 2014 write the Guardian.

So just how many shows does that $400m they are borrowing create? Well according to CAA TV literary agent, Peter Micelli each original episode made by Netflix costs just shy of $4 million. It is these kind of eye watering costs that forced Intel to abandon its OnCue internet TV service and sell it on to Verizon for $200 million. Verizon have content deals already wrapped up for it’s other TV interests.

As to what kind of content Netflix will be making, the same long serialized shows that make viewers want to watch the next episode and binge watch whole seasons. Business Insider have a good take on the kind of reasoning goes into a new Netflix show.

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