Content is EXPENSIVE

In a matter of nine years, Netflix’s obligations for streaming content ballooned to $19.3 billion in 2018 (from $1.3 billion in 2010).  And, by no means will 2018 be the peak.  With increased competition coming from the likes of Disney (with Hulu), ViacomCBS, NBCUniversal, WarnerMedia (with HBO), and now Apple TV, Netflix is expected to spend close to $15 billion in original content in 2019.  

Going forward, though, it may be less about Netflix’s ability to stay on top of the streaming world and more about how the likes of ViacomCBS will be able to make headway in an increasingly crowded, fragmented market that costs a lot of money (scale) to participate in.

Period Ending	Streaming Content Obligations (000)
12/31/2018	$     19,285,875
12/31/2017	$     17,694,642
12/31/2016	$     14,479,487
12/31/2015	$     10,902,231
12/31/2014	$       9,451,112
12/31/2013	$       7,252,161
12/31/2012	$       5,633,685
12/31/2011	$       3,907,198
12/31/2010	$       1,299,176

Source: Netflix’s 10K reports