It’s no secret that as Netflix’s library of original content with shows like “Daredevil” and “Stranger Things” is growing, their library of licensed content of other studios’ TV series and films is shrinking.
Speaking at Goldman Sachs’ Communacopia conference on Tuesday, Netflix CFO David Wells revealed that the streaming giant is aiming to have up to half the content on its streaming service be original productions over the next few years. Internationally, Netflix aims for about 80% Hollywood content and 20% locally produced, in-language programming.
In 2016, Netflix expects to launch 600 hours of original programming which is up from 450 hours in 2015. Projected content spending is expected to rise from $5 billion this year to more than $6 billion in 2017.
Wells says that Netflix is raising prices to generate more revenue, which it will then invest in additional content to attract and retain subscribers. Around 33%-50% who do cancel Netflix accounts eventually return to subscribe to the service.