Netflix, Inc. Updates its 'Long-Term Vision': Plans to Spend $7 billion in 2016
Netflix, Inc has plans on being in over 200 countries by the end of 2016, in order to do so, it will be spending $7 billion in the coming year.
In the coming year Netflix, Inc. plans on spending an ample amount on money specifically on its content, marketing and tech development, according to the streaming giant’s updated ‘long-term vision’. This long-term vision states how the company’s chief executive officer Reed Hastings and his team are going to conduct activities to take the business further. In the broadest way possible, the statement suggests that in the coming years, Internet television will completely replace the old fashioned television and the video streaming company plans to keep leading that market by providing its users with an amazing entertainment experience.
These future plans of the video streaming company were published in July and mostly focused on competitive strategies. It has also stated the amount of money will be spending in the year 2016; the biggest expenses for the year will be in the marketing, development and producing original content category. All in all, the video streaming services company will be spending at least $7 billion, although it is hard to say how much profits the company will be generating but the future seems hopeful.
The online streaming giant has always provided its 65 million subscribers with a number of TV shows and movies for their entertainment which will, for the year 2016, cost the company at least $5 billion. At present, Netflix’s main focus is on making original content for its audience instead of signing deals with content owners. Recently, the video streaming media cancelled its deal with Epix, a satellite television network which provided video on demand service. As per their long term vision, they are focus on becoming a network like HBO that produces its own content instead of relying on other network cable companies. They stated that they are constantly curating their own service and prefer to do so rather than keeping many titles from other content providers.
One partnership that the streaming media has decided to keep is with Disney. This deal with the mass media firm is worth $300 million and it is expected that this partnership will continue to grow in the future. In 2016, both the companies will come even closer as Netflix will be Disney’s exclusive distributor for ‘The House of Mouse.’
The streaming giant has recently launched in the Japanese market and hence has not been able to create a brand name there so for the coming year it has planned to spend as much as $1 billion in the international market on marketing and advertising so attract as many new subscribers as it can. The company’s main priority at this point is to gain a good number of international subscribers for which will be have to do heavy marketing. As of right now, the service is going under a loss in these international markets but Hastings is fairly confident that soon they will be able to generate strong profits from these markets.