Netflix has been switching gears from its original business plan of streaming licensed content. According to a report on Variety, the wildly popular streaming service, Netflix, is looking to make half of its content original programming over the next few years while maintaining the other half as strong licensed content.
At the beginning of 2016, Netflix announced that it would launch 600 hours worth of original programming, a huge increase from the 450 hours of original content it released in 2015. Over the course of the next few years, Netflix has plans to release a mix of content owned and produced by Netflix itself, in addition to co-productions and acquisitions. According to David Wells, Netflix CFO, the company is currently "one-third to halfway" to reaching its 50 percent goal.
In most cases, Netflix's original content has gained more popularity than its licensed content. Popular shows like House of Cards and Master of None have received many awards, and the new show Stranger Things has become a breakout hit in the past few months and has already been renewed for a second season. However, not all of its content has been a huge hit and Netflix is quick to acknowledge this. The company is fine with this content as it knows that not every new program will pick up major followings, "We don't necessarily have to have home runs," CFO David Wells told Variety. "We can also live with singles, doubles, and triples especially commensurate with their costs."