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Netflix dropping $3 Billion to produce even more original content

Posted on 10/24/16 at 8:00 pm
Posted by Uncle Stu
#AlbinoLivesMatter
Member since Aug 2004
33658 posts
Posted on 10/24/16 at 8:00 pm
quote:

Netflix Pledges to Eat $3 Billion in Debt for Original Programming


quote:

Netflix announced in a press release on Monday that the company would be taking on another $800 million in debt in order to create more original content. Netflix is already in $2.37 billion of debt to further Netflix’s vision of being 50 percent original content. Chief content officer Ted Sarandos announced in January that the company planned to invest $6 billion total in creating its own movies and TV shows. So it’s half way there.

Netflix has already dramatically decreased its selection of movies and TV shows, so this new content better be pretty dang good if it’s going to replace the many good things we have lost.




LINK

Good move? Bad move?
This post was edited on 10/24/16 at 8:01 pm
Posted by SEClint
New Orleans, LA/Portland, OR
Member since Nov 2006
48769 posts
Posted on 10/24/16 at 8:02 pm to
I think it's a good move. More content is a plus.
Posted by OMLandshark
Member since Apr 2009
108098 posts
Posted on 10/24/16 at 8:03 pm to
3rd Avatar series. Come on Netflix!
Posted by cjared036
Houston, tx
Member since Dec 2009
9569 posts
Posted on 10/24/16 at 8:04 pm to
Spend money on the ability to air live sports please.

College sports/mlb/hockey please.
Posted by OMLandshark
Member since Apr 2009
108098 posts
Posted on 10/24/16 at 8:06 pm to
quote:

Spend money on the ability to air live sports please.



That would be a declaration of war against the networks.
Posted by Brosef Stalin
Member since Dec 2011
39169 posts
Posted on 10/24/16 at 8:07 pm to
Owning the rights to a movie or show will pay off down the road. I think they will end up selling the cable rights to some of their original movies. Comedy Central, TBS, USA, etc would all be willing to get the cable rights to the Adam Sandler movies and after 2 or 3 years everyone on Netflix who wants to see them will have already seen them. Might as well make some extra money off them.
Posted by SEClint
New Orleans, LA/Portland, OR
Member since Nov 2006
48769 posts
Posted on 10/24/16 at 8:10 pm to
they were wanting to buy the rights to the Mystery science theater 3000 library. 10+ years of feature films. Shitty films..but still. That's just 1 show, I know their new episode that is coming was crowd funded. But maybe Netflix is picking up the option with many more shows.
Posted by Clark W Griswold
THE USA
Member since Sep 2012
10506 posts
Posted on 10/24/16 at 8:10 pm to
Don't cancel Bloodline
Posted by LandonC
Member since Oct 2016
599 posts
Posted on 10/24/16 at 8:17 pm to
Make a good live action movie version instead
Posted by athenslife101
Member since Feb 2013
18552 posts
Posted on 10/24/16 at 8:19 pm to
Hmm,

Some quick research shows that this debt they're building is through bond sales and and their debt to equity levels have skyrocketed since 2013.

In 2013, their debt to equity level was about 30%. Fast forward to today, and their debt to equity was even at 2.4 billion. Shows long term planning. Not sure if they can keep subscription levels up long enough for this to be a permanent sound business model.

Do you really want your capital poor organization taking on a lot of debt?
Posted by OMLandshark
Member since Apr 2009
108098 posts
Posted on 10/24/16 at 8:19 pm to
quote:

Make a good live action movie version instead


Why not both and let them both promote the other? If there is one franchise deserving of another Lord of the Rings treatment, it's that.

Edit: If I were in charge of Netflix, I would immediately buy out that series. You put the first two series on the site, get someone like Edgar Wright or Brad Bird to simultaneously shoot a live action 10 hour trilogy to release in theaters, and then get Mike and Bryan to make 3 new seasons of the Earth Avatar that would succeed Korra released between the films.

The problem with the series was the average viewer was in their late teens to early 20s in both series, and they sold well on DVD, but they didn't buy any of the shite that was advertised on the network. It's an utter perfect series for Netflix, because they don't have to worry about that. The creators will clearly never do another series for Nickelodeon again, the same idiots who passed on Adventure Time, but I think they'd jump at a Netflix contract, provided their schedules are cleared. Both are working on different graphic novels right now.
This post was edited on 10/24/16 at 8:30 pm
Posted by mizzoubuckeyeiowa
Member since Nov 2015
35448 posts
Posted on 10/24/16 at 8:22 pm to
quote:

Netflix is already in $2.37 billion of debt to further Netflix’s vision of being 50 percent original content.


Wow.

They are owning the entertainment industry.

This is like Google swagger.
Posted by wildtigercat93
Member since Jul 2011
112279 posts
Posted on 10/24/16 at 8:33 pm to
Brilliant move

They see the market saturation of their original business strategy and have decided to pivot. It may or may not work out, but the logic is there
Posted by Wooly
Member since Feb 2012
13851 posts
Posted on 10/24/16 at 8:35 pm to
If the att time warner merger goes through. That could mean problem with net neutrality right? Which could mean Netflix might be in trouble?
Posted by jeff5891
Member since Aug 2011
15761 posts
Posted on 10/24/16 at 8:43 pm to
quote:

Spend money on the ability to air live sports please.


If only they had gotten the rights to those football games instead of twitter.....
Posted by HeadChange
Abort gay babies
Member since May 2009
43833 posts
Posted on 10/24/16 at 8:47 pm to
quote:


Don't cancel Bloodline

One more season is best you can get from a show like this. Smart not to drag it out
Posted by jg8623
Baton Rouge
Member since Aug 2010
13531 posts
Posted on 10/24/16 at 8:49 pm to
quote:

That could mean problem with net neutrality right? Which could mean Netflix might be in trouble?


If ATT would decide to block netflix's availability to its users
Posted by Breesus
House of the Rising Sun
Member since Jan 2010
66982 posts
Posted on 10/24/16 at 8:50 pm to
I love Netflix.

Unbreakable Kimmy Schmidt
Bojack Horseman
Lilyhammer
Hemlock Grove
Stranger Things
Trailer Park Boys
House of Cards
Master of None
Peaks Blinders
Arrested Development
Daredevil
Jessica Jones
Luke Cage
Mascots


They've had some awesome shows and they're kicking the shite out of network TV.
Posted by Breesus
House of the Rising Sun
Member since Jan 2010
66982 posts
Posted on 10/24/16 at 8:51 pm to
quote:

If the att time warner merger goes through.


That would be a fricking terrible decision. It's a massive slap in the face to net neutrality. It's exactly the opposite of what we need.
Posted by jg8623
Baton Rouge
Member since Aug 2010
13531 posts
Posted on 10/24/16 at 8:53 pm to
quote:

they're kicking the shite out of network TV.



Granted, that's really not that hard to do when you have no time slot restrictions or content restrictions
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