Thursday 17 October 2019

Netflix boss predicts rise in costs

Netflix chief executive Reed Hastings said the entry of Apple, Disney and NBC into the global streaming market will push content costs to levels that make its epic drama about the British royal family
Netflix chief executive Reed Hastings said the entry of Apple, Disney and NBC into the global streaming market will push content costs to levels that make its epic drama about the British royal family "look like a bargain". Photo: Chris Ratcliffe/Bloomberg

Paul Sandle

Netflix chief executive Reed Hastings said the entry of Apple, Disney and NBC into the global streaming market will push content costs to levels that make its epic drama about the British royal family "look like a bargain".

His comments at the RTS television industry conference in Cambridge, England, jolted investors already worried about growing competition and sent the streaming heavyweight's stock down 6pc, adding to a recent sell-off.

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Disney and others will vie for subscribers and likely drive up production costs. Costing a reported £100m (€113m) to make, The Crown won critical acclaim and has helped Netflix build its subscriber base, which has risen to 152 million and given it a head-start over rival pay-TV and technology firms.

"It's a whole new world starting in November," Hastings said. "Someday The Crown will look like a bargain."

He cited the planned launch of services by Apple and Disney, as well as a ramping up of Amazon's offerings and the forthcoming Peacock platform from NBCUniversal.

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