The year 2015 brought more content. Streaming services like Netflix and Amazon are growing their content the fastest on a much smaller base but basic cable isn't too far behind in their creation.
The year 2016 doesn't look any different. Just take a look at Netflix:
In a recent note to investors, Nat Schindler, an analyst at Bank of America Merrill Lynch, counted all the new shows Netflix is offering this year. He tallied 31 TV series, 10 feature films, 30 children’s shows, 12 documentaries and 10 stand-up comedy specials.
“To put it into perspective, you would have to watch Netflix for 25 days straight to consume all of its new original content next year,” Mr. Schindler wrote.
As Netflix launches into 130 countries their cost leverage for content only improves and it seems as though cost increases in their top countries are justified:
Analysts also expect Netflix to begin raising its subscription fees, which are currently the most attractive in the media business. Customers streamed 12 billion hours of Netflix video during the last three months of 2015, the company says. That means customers paid around 14 cents per hour of Netflix, according to Rob Sanderson, an analyst at MKM Partners.
“Cable is between 25 and 30 cents an hour — so Netflix is basically half,” Mr. Sanderson said. “If you look at the dollars per hour of Netflix, there’s nothing even close.”
Stock price aside, one doesn't seem to need to worry about Netflix subscriber growth, additional content or potential to increase prices. Seems the only worry might be the world becoming awash in too much content.