skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

Telecoms.com

 

 

 

Analyst firm Ovum reckons Netflix’s spending on original content is unsustainable and something’s got to give.

Series such as House of Cards, Daredevil and The Crown reportedly cost hundreds of millions of dollars to produce and deliver no immediate return on investment, such as advertising and licensing deals. The only reason they’re produced is to drive up the number of Netflix subscribers, but Ovum reckons the cost is too high.

 


 

In a report entitled ‘Netflix’s Current Business Model is Not Sustainable’, Ovum says “Netflix is caught between a rock and a hard place, as it has to spend vastly increasing amounts of cash on producing original content amid a very competitive content production and licensing market, but is unable to raise prices sufficiently to make meaningful profits due to intensifying competition.”

Read more of the article here.

Have any questions? Speak to a Specialist

Europe, Middle East & Africa team - +44 (0) 207 017 7700


Asia-Pacific team - +61 (0)3 960 16700

US team - +1 646 957 8878

+44 (0) 207 551 9047 - Operational from 09.00 - 17.00 UK time

You can also contact your named/allocated Client Services Executive using their direct dial.
PR enquiries - Call us at +44 788 597 5160 or email us at pr@ovum.com

Contact marketing - 
marketingdepartment@ovum.com

Already an Ovum client? Login to the Knowledge Center now