Netflix has a big goal: to have originals make up half of the content on the streaming platform.
According to CFO David Wells, it will take a “couple more years” to reach that milestone. He told investors on Tuesday that Netflix will drop more than $1 billion into original content, and that might mean borrowing money, which would mean original series might take longer in development.
He added that the demand for more originals means that the streaming service will also have to raise prices over time. This summer Netflix raised its monthly fee, and subscriber growth started to decline earlier this year. Wells admitted Netflix leadership is facing “pressure from investors that we’re underpriced.”
While Netflix has seen success with shows like Stranger Things and an Emmy for Master of None, it’s also starting to pump the brakes, as evidenced by the recent cancelation of Bloodline. The show never quite found the right audience, which could likely be said for other original series that still have a pulse. Could more cancellations lie ahead?