Netflix’s original content costs are ballooning

Netflix’s original content costs are ballooning


Netflix today once again showed that its subscriber growth is on a tear — especially its growth internationally — but a note in the report may indicate one of the biggest challenges the company faces going forward.

Netflix took home 20 Emmy awards this year, and that’s thanks to its enormous investments in original content. Shows like “Stranger Things,” “The Crown,” and “Master of None” are critical to getting new users to sign up to the service. But in today’s earnings report, the company said it’ll spend between $7 billion and $8 billion on original content next year. In short, making those shows and snapping up those awards is expensive — and vital to Netflix’s growth.

In August, Netflix’s Ted Sarandos said in an interview with Variety that he…

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