Netflix Pours Money into Its European Operations
Active supporter of Europe
Netflix (NFLX) is pouring money into its European operations, calling itself one of Europe’s (EFA) most active supporters. During a March 2017 event in Germany (EWG) that was sponsored by Netflix, the company’s CEO, Reed Hastings, offered a glimpse into the company’s goals and achievements. European content is widely popular on the Netflix platform around the world.
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Hastings revealed that Netflix has invested more than ~$1.8 billion in content alone in Europe, and he sees that budget growing as the company pursues growth overseas. Netflix is struggling with fierce competition from Amazon (AMZN) and Hulu in the domestic US (SPY) market, compelling it to expand its offshore operations rapidly.
European content reaching 93 million viewers
Netflix sees itself supporting Europe’s media industry by giving viewers a broader catalog of shows to watch anywhere they want, as well as giving producers a wider market for their content. The company said its European content is watched by more than 93 million of its worldwide subscribers, and it expects the audience to exceed 100 million viewers soon.
ReThink Technology Solutions estimates that Netflix’s European audience could be ~19.0 million and is expected to grow to 45.0 million by 2021, as illustrated in the chart above.
$6 billion for content
Netflix (NFLX) is currently working on more than 90 original shows and movies in Europe, and it expects to make its service available in 15 languages. It currently offers content in 13 languages. Netflix is planning to increase its overall content spending to $6 billion in 2017 from $5 billion in 2016.