The original films of Netflix increased with 185% of AAGR The quantities of movies and tv shows decreased by 32% for online movie-rental service site Netflix in the past two years. However, its original films increased rapidly.
Since 2012, Netflix's original films and tv shows received an annual average growth rate at 185.41%, up to 111 films and shows.
It seems that its original films and show keep increasing. Netflix editor supervisor Ted Sarandos announced in January that the company will produce about 600 hours' original content, including 31 original tv shows. This productivity is twice as 2015 made.
Its senior officers claimed that the original content is the better investment projects for the company.
CFO David Wells suggested that there are more potential opportunities for original content though it is a bit conservative in comparison with the imported programs. CEO Reed Hastings concluded the original content more simplified " better".
It is good news to explore the original content to Netflix. It felt pressure from the traditional tv giants concerning the programs authorization. The traditional giants started considering Netflix as a threat to them.
Its original films and tv shows help Netflix to explore the international market easier as Netflix does not need to deal with the authorized issues.
Its global development is beyond the expectation of Wall Street though its users growth did not meet Wall Street's expectation last quarter.
The consumers concern more about the content's manufacturing quality as there are more original films and tv shows made by Netflix. Netflix collected data from its users to improve the manufacturing quality of original films and tv shows.
The concerned problem of Netflix is whether its original content would attract more new subscribers and retain its existing ones. In fact, Netflix considers developing original content could be the best strategy for it judged by its promotions.