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Netflix Bets Big: Streaming Giant Boosts Content Budget to $18 Billion in 2025 (UPDATED)

In 2025, Netflix plans to increase its content budget to approximately $18 billion, marking an 11% rise from the previous year's expenditure of $16.2 billion. This significant investment underscores Netflix's commitment to expanding its content library and maintaining its competitive edge in the streaming industry.

Over the years, Netflix's content spending has grown substantially, increasing from $6.88 billion in 2016 to over $16 billion in recent years. This upward trajectory reflects the company's strategy to attract and retain subscribers by offering a diverse array of original and licensed programming.

The decision to boost content spending comes on the heels of a remarkable fourth quarter in 2024, during which Netflix added nearly 19 million subscribers, bringing its global total to over 300 million. This surge in subscribers is partly attributed to Netflix's foray into live event programming, including high-profile sports matches and exclusive live shows, which have enhanced subscriber engagement and retention.

Chief Financial Officer Spencer Neumann emphasized that the $18 billion content budget is "not anywhere near a ceiling," indicating the company's intention to continue investing heavily in content to drive growth. Neumann highlighted the vast opportunities for expansion and Netflix's goal to deliver more entertainment value per dollar to its subscribers.

In addition to content investment, Netflix's advertising expenses have also seen an upward trend, reaching nearly $1.73 billion in 2023, a 9% increase from the previous year. This reflects the company's efforts to market its expanding content library and reach a broader audience.

The global content spending landscape has been evolving, with total expenditures on film and TV content increasing by $4 million between 2023 and 2024, signaling a recovery from previous industry disruptions. Netflix's substantial investment is expected to influence competitors' strategies and contribute to the overall growth of the streaming market.

In summary, Netflix's planned $18 billion content budget for 2025 reflects its aggressive strategy to enhance its content offerings, attract new subscribers, and solidify its position as a leader in the streaming industry. This investment is poised to shape the future of digital entertainment and set new benchmarks for content spending in the sector.

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Hulu Crashes Before Biggest Moments at 97th Academy Awards

For the first time ever, the Academy Awards was live streamed on Hulu while also airing live on ABC. This decision, announced in December as part of a Disney/ABC deal, was meant to modernize the ceremony and boost viewership by offering a digital option for audiences. However, the Hulu live stream faced technical difficulties, leaving many viewers unable to watch key moments of the show.

More than 34,000 users reported issues just 28 minutes after the show began. On X, Hulu’s support team advised users to restart the app, but the situation persisted. Towards the end of the ceremony, which lasted 3 hours and 47 minutes instead of the expected 3 and a half hours, many Hulu subscribers were abruptly cut off before the Best Actress and Best Picture announcements.

Viewers expressed their frustration on social media, especially since the Best Actress category was widely anticipated. Many had expected Demi Moore to win for The Substance, but in a surprise twist, Mikey Madison took home the award, which was news that some Hulu viewers missed in real-time. Disney later made the full ceremony available on-demand.

This issue occurred at a time when the Academy of Motion Picture Arts and Sciences is exploring new broadcast partnerships. AMPAS’s exclusive negotiation window with Disney expired, allowing other streamers like Netflix and Amazon to make their bids. The Academy is considering other options due to Disney’s reluctance to increase the price of its current deal, valued at over $100 million annually. Oscars viewership, which dropped more than 50% over the last decade, adds urgency to the Academy’s efforts to expand its audience.

Viewership for this year’s Oscars totaled 18.07 million across ABC and Hulu. This marks a 7% decrease from last year’s four-year audience high of 19.5 million and a minor drop from 2023’s 18.8 million viewers. While multiple factors could have contributed to this decline, Hulu’s mishap may have played a role in deterring digital audiences. Additionally, the length of the show could have made it more difficult to retain viewers, though past ceremonies have lasted even longer.

While technical difficulties are common in live streaming, Hulu’s issues highlight the challenges of transitioning live events to streaming platforms. As the Academy decides its future broadcast partnerships, the performance of streamers will likely play a role in its decision-making process.

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Greta Gerwig's Game-Changing Distribution Deal Between Netflix and IMAX (Updated)

Netflix’s decision to release Greta Gerwig’s upcoming Narnia films in IMAX represents a rare departure from its longstanding streaming-first distribution model. Historically, the company has limited its theatrical runs to the bare minimum required for awards qualification. However, the agreement to provide Narnia with a two-week exclusive IMAX release on Thanksgiving, followed by a four-week theatrical window before its Christmas debut on Netflix, reveals a reassessment of its approach, particularly for potential high-profile franchises.

In a previous experiment, Netflix allowed Glass Onion: A Knives Out Mystery to be distributed in theaters for one week before moving to the platform. Despite strong box office performance during its limited release, Netflix declined to extend the film’s theatrical window, prioritizing its streaming-first philosophy. The decision was widely debated, with director Rian Johnson and lead actor Daniel Craig supporting a longer theatrical run.

This decision follows a pivotal moment in Netflix’s acquisition strategy. The company recently failed to secure the rights to Emerald Fennell and Margot Robbie’s upcoming adaptation of Wuthering Heights due to its reluctance to commit to a traditional theatrical release. This loss, coupled with increasing pressure from filmmakers advocating for cinematic rollouts, seemingly influenced Netflix’s willingness to make this Narnia agreement. 

The implications of this move extend beyond just this release. By branding the film as a “Netflix/IMAX release”, Netflix is testing the viability of a hybrid model that could impact its future dealings with filmmakers. This shift mirrors broader industry trends, where studios have recognized that theatrical releases can enhance a film’s longevity and cultural impact before transitioning to streaming.

Nevertheless, Netflix remains cautious, framing this as a one-time exception rather than a full strategy change. Chief Content Officer Bela Bajaria emphasized that the Narnia release is a “bespoke” approach tailored specifically for this project, while co-CEO Ted Sarandos reinforced that the company’s core strategy remains focused on providing exclusive films to its streaming subscribers. Despite this, the Narnia deal sets a precedent, raising expectations among both filmmakers and audiences for future theatrical opportunities.

Ultimately, Netflix’s willingness to deviate from its distribution model showcases the evolving nature of video streaming. As competitors like Amazon and Apple TV+ embrace theatrical-first strategies to bolster their streaming catalogs, Netflix’s experiment with Narnia will be a critical test case. Whether this signals a broader shift or remains an exception depends on Narnia’s IMAX success. Word count: 400

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How the NFL is Utilizing Streaming Ahead of Super Bowl LIX

The National Football League has strategically embraced streaming to expand its reach while maintaining its dominance in traditional television. Super Bowl LIX, set to air on Fox, highlights the league’s evolving approach, blending linear TV with digital platforms to maximize viewership and revenue.

Platforms like Paramount+ and Peacock leverage exclusive NFL broadcasts to attract new subscribers, with notable increases in sign-ups during the football season. Subscriber acquisitions for both services rose by 55-60% during the NFL season compared to the offseason. Retention rates for subscribers who join during NFL season are notably higher than the platforms’ average, in part due to strategic programming aimed at the NFL demographic.

The Super Bowl has rotated between CBS, NBC, and Fox since 2006 and with ABC and ESPN soon set to rejoin the rotation, NFL will further its reach across networks. When NBC and CBS air the Super Bowl, their streaming platforms, Peacock and Paramount+, experience significant boosts in viewership and subscriptions. When Fox, (which owns Tubi, but does not yet have a subscription-based streaming service) hosts the Super Bowl, viewership and subscriptions for multichannel video programming distributors (MVPDs), like YouTube TV and FuboTV, increase. In 2023, about 800,000 people signed up for MVPDs during Fox’s Super Bowl, with 60% choosing YouTube TV. This is predicted to be reduced in 2025, as many of those potential new MVPD subscribers will likely turn to Tubi since it is free and accessible.

The NFL has carefully balanced its transition from traditional TV to streaming, ensuring that both audiences remain engaged. The league has struck deals with multiple streaming services while preserving a strong presence on network television. NFL Sunday Ticket’s SuperFan package moved from DirecTV to YouTube TV, leading to an increase in subscriptions. Netflix now airs select Christmas Day games, marking the platform’s first major step into live sports. Amazon Prime has exclusive rights to Thursday Night Football, drawing in millions of viewers and subscribers. Since the launch of Sunday Ticket on YouTube TV, it has made up 1/3 of all Primetime Channel subscriptions, and the service has tripled in users since then. The NFL benefits indirectly from SVOD and MVPD growth, as services pay large sums for rights to air games, knowing they drive subscriptions. So, while a fully streaming-exclusive Super Bowl is not yet likely, more exclusive NFL events on streaming services may continue to appear. Word count: 398

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My Sector is Video Streaming

Sources include...

Deadline | The Hollywood Reporter | Variety