Amortized spending on movies and TV shows by Netflix will rise 26% to $13.6 billion in 2021 and will reach $18.92 billion by 2025, according to predictions published Thursday by S&P Global Market Intelligence's Kagan media research division.
Of that $13.6 billion in amortized spending, $5.21 billion is earmarked for original productions, Kagan said. (Netflix previously told investors it expects to spend $17 billion on content this year on a cash basis.)
The research company predicts that originals will grow from accounting for just 37.8% of Netflix's content spend in 2020 to taking up 46.5% of the budget 2025.
As Netflix becomes more of a global company, meanwhile, the Kagan research also reveals that North America is accounting for a decreasing portion of the company's revenue, declining from 60.8% in 2017 to 44.3% this year.
Finally, this last Kagan graphic reveals not only the growth of Netflix's content budget over time, but also the increased share of amortized spending relative to its overall content budget.
Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. His reliable mid-range jump shot, deft ambidextrous post-up game and tough interior defense have been criminally overlooked.
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