Netflix changes the paradigm for producers (NFLX)

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April 3, 2018 3:32 PM

Thanks to its massive spending, Netflix has created a seller’s market for producers and studios.

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As Netflix continues to ramp up its annual content investment, the streamer has effectively changed the paradigm for content producers in a way that both expands and limits opportunities for producers and studios as well as for rival networks competing for the best content and talent, perDigiday.

Netflix CFO David Wells said recently that in 2018, Netflix will spend $8 billion and produce 700 pieces of original content, including 80 full-length original movies and 80 foreign-language original productions from local international territories where Netflix operates.

Thanks to its massive spending, Netflix has created a seller’s market for producers and studios. Here are some of the fundamental ways that the new paradigm initiated under Netflix has benefited content producers:

Yet the new environment also potentially hurts producers:

There’s no guarantee that a producer’s content will get discovered.
Even if producers make more upfront for a piece of content, they lose any potential long-term income that might have resulted from syndication deals or international sales.

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