In an interview with The Hollywood Reporter, Netflix, Inc. (NASDAQ:NFLX) head of content Ted Sarandos noted that they are competing against Pokémon Go and $200 million blockbuster movies and not the likes of ABC, CBS Corporation (NYSE:CBS)among other.Sarandos went ahead to defend the company on why they spend so much on original content. He defended Netflix’s $129 million BazLurnmann show, noting that part of their business is making event television which is not cheap. He further noted that at times they to take those big swings every once in a while.
Sarandos went ahead to state that they have a one-on-one relationship with their subscriber, and if a user does not like what they are watching on Netflix, they can easily click and cancel something that they don’t want to happen and the reason they take chances to keep their customer around as adding new ones. Netflix has been heavily working on its own original content that users can stream. Currently, they have House of Cards, Orange is the new Black, Fuller house among other. This year, they are set to distribute 600 hours of their original content.
In Netflix’s last quarterly earnings, Netflix noted that it was facing reducing subscriber growth in the US due to higher than expected cancellation. Netflix blamed this on media for focusing too much on its price hikes, though having everyone talking about it is one way of ensuring people keep paying even if it is two more dollar a month.
The year has basically been big for Netflix due to increased release of original content and the additional of 130 counties. That was a big deal for the company and could help them grow exponentially in such a short period.
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