Netflix produced more original programming last year than cable’s premium network leader HBO, according to the numbers provided by the two companies. It is surely a big achievement for the streaming firm, as when it started to move away from streaming TV reruns and previously released movies, CEO Reed Hastings set out to copy the premium TV network.
Netflix overtakes HBO in original content
Netflix has been growing continuously since subscribers began to applaud its push into original shows. Last year, Time Warner’s HBO put out 401 hours of original programming while Netflix put out 450 hours. Both companies are expected to release roughly 600 hours of original material this year, says ABC News.
Tom Numan, a former TV network and studio executive, says the video streaming giant is fulfilling its aim to put itself into “an entirely different and supreme league.” Numan, who also lectures at UCLA’s graduate school of theater, film and television, says Netflix’s goal is to become the first global network for original shows and movies.
Nothing has been disclosed by the video streaming giant in respect to how much it spends on original series, but the percentage is probably increasing steadily. It’s believed the company’s profit margins have declined because of the cost of licensing and overseas expansion.
But the move is surely paying off as about 45% people said the reason they subscribe to Netflix is its original programming, according to an online survey of 2,500 U.S. adults by Morgan Stanley. Netflix’s goal is “to become HBO faster than HBO can become us,” said Ted Sarandos, the company’s head of programming, in 2013.
A loyalty test soon
With Netflix’s services available in 190 countries now, Hastings expects to surpass 100 million subscribers next year. On Monday during the earnings call, the CEO noted that the company is “really excited” about the boost it expects from its growing library of exclusive programs.
Other popular services like Amazon.com and Hulu are also looking resolute to progress in original programming. Amazon can boast about its Emmy awards, as it won more than the streaming giant, but its own original slate is just a quarter the size of its rival, the report says.
Netflix will hike its price 25% next month, and this will test the loyalty of its long-time subscribers. Based on analyst estimates, this price hike will hit 17 million to 22 million U.S. subscribers. Late Monday, the streaming service released its first quarter results, earning 6 cents per share, or $28 million, on revenue of nearly $2 billion.