On Monday, Netflix announced that it would spend up to $8 billion on movies and shows in 2018, up from the $6 billion the streaming service earmarked this year for its content.
Netflix’s increase in spending comes during a time when giants in tech such as Apple, Amazon and Facebook are using their huge cash reserves to hunt for new, original shows as well as movies.
In its release on Monday of earnings, Netflix said the company enjoyed a big head start, but its job is to improve as quickly as possible to remain ahead of all its competition for decades to come.
Netflix in particular is ramping up its count of original movies. Ted Sarandos the CCO at Netflix said Monday the company is planning to release over 80 films in 2018.
Netflix is betting big on its original content which has helped the video streaming service to acquire as well as retain subscribers even though it is raising prices and faces some pushback from its media partners.
The company gained over 5 million new subscribers during its third quarter, with most of them being located across different international markets. The service now in has over 109 million subscribers up from the 86 million for the same quarter one year ago.
Earlier in October, Netflix released its plans to increase prices for both standard and premium subscription streaming services.
The change, which will begin later in 2017, will push monthly rates for its most popular streaming plan to $10.99 from $9.99.
David Wells the CFO at Netflix said it was all about being slow and steady as the company is not in any hurry, when an analyst asked him about the price hike timing. Many investors, said Wells have criticized the company for being underpriced.
At the same time, Netflix is facing threats from media companies of removing their content from its streaming service. During August, Disney said it was going to pull its movies from Netflix due to launching its own service for streaming video.
Nevertheless, Netflix has forecasted strong growth during the upcoming final quarter of 2017, and its expecting to add over 6 million new members worldwide, which is in line with expectations on Wall Street.
Netflix acquired a comic book publisher during the third quarter as it has the aim of using the publisher to develop more new films as well as new series.