How Much Are They Spending?
Netflix, Amazon, Hulu and other VoD services have taken to producing their own content as a part of their distinction strategy. But just how much are they shelling out for big names like Kevin Spacey and John Goodman?
Most analysts have a hard time estimating the spendings for Amazon and Hulu, whereas Netflix is pretty transparent in their quarterly reports. CEO Reed Hastings said that spending on original content is about 10% of the overall content acquisition budget of $4 billion. House Of Cards alone takes the lion’s share with its budget of $100 million.
Amazon has claimed in 2013 that it would spend $1 billion on original programming. Analysts are speculating that they have come close to spending $1 billion in 2014 on a host of upcoming shows that have been greenlit. Amazon has recently reported it would spend close to $2 billion on “technology and content” in 2014, a $600 million hike from 2013.
Hulu is the smallest of these three, but CEO Mike Hopkins has promised to triple the investment in original programming.
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