Netflix CEO Spence Neumann described a top-down and bottom-up process for determining content spend, which is expected to come in at about $18 billion in 2025 and, he said, is “not anywhere near a ceiling.”
“It’s a little art in science,” he added during a Q&A at the Morgan Stanley media conference.
On the top line, “We have a pretty good sense of predictability of our revenue. We’re primarily a subscription model. We’ve got a pretty good sense over time of the ability to kind of drive demand and revenue from our investments across the business. So we start with that, and then we also set our margin targets.”
“Then what’s left over is to spend into content. So then there’s the bottom-up exercise … as we look [at] those categories of content, across genres, across countries and regions and across original and licensed content, and
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