ALLOCATES LESS THAN 20% OF ITS CONTENT SPEND ON LOCAL PRODUCTIONS
Netflix is now investing more on content than the BBC,according to Ben Keen, chief analyst, IHS Technology. Speaking at a session entitled The Story Behind The Numbers and presenting data produced by IHS,he added that Netflix was also outspending Discovery though not Sky, with the latter’s figures impacted by the high cost of sports rights. Keen also noted the largely unrecognized high spend of content by Amazon.However, it was easy to get carried away with the OTT video market, which is still relatively small compared to traditional TV. Keen identified the close correlation between the level of spend of content at Netflix and its subscriber base.Growth in one had closely tracked growth in the other.Although Netfix currently allocates less than 20% of its content spend on local productions, this figure is set to rise. Keen further said that the global online video revenues, will more than double by 2018, driven by subscriptions and advertising. There are already over 40 million SVOD subscriptions in EMEA, half of which are for standardised online services.