Netflix Content Spending Predicted to Rise 26% in 2021

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S&P Global Market Intelligence’s Kagan media research unit says Netflix's amortized spending on shows and movies will reach $13.6 billion this year

Netflix
(Image credit: Netflix)

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.

(Image credit: S&P Global Intelligence)

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. 

(Image credit: S&P Global Market Intelligence)

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. 

(Image credit: S&P Global Market Intelligence)
Daniel Frankel
Daniel Frankel

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. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!