Alex Bailey/Netflix
Netflix Inc. is pumping a lot of money into its shows and producing some of the most expensive TV series ever made.
The streaming giant’s next original program “The Crown”—produced by Sony Pictures’ UK-based production company, Left Bank Pictures—is set to debut Nov. 4 and racked up a reported $130 million in production costs.
Netflix NFLX, +4.14% did not respond to requests for comment.
“The Crown” is a 10-episode series about the British royal family and its parliament in the second half of the 20th century. At $13 million per episode, on average, “The Crown” is right up there with the most expensive TV show ever, which, according to Statista data, was “ER,” which also cost $13 million an episode.
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Netflix has said it would shell out $6 billion in 2016 to bolster its slate of original content and the company looks set to spend about the same next year. Networks and studios in Hollywood have been struggling to compete with the company given their more limited budgets. Netflix is heading toward a 50:50 split for original and licensed content on the platform.
As part of the push, Netflix released “The Get Down” from director Baz Luhrmann in August. The show, detailing the birth of rap and hip hop in a burning late-’70s South Bronx, cost $120 million, or $10 million per episode, to produce. That ties the 12-episode series with “Friends” for the third most expensive TV show measured by episode.
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And Netflix shows no signs of slowing down soon. Chief Content Officer Ted Sarados told a crowd at a Royal Television Society event in London recently that Netflix has 30 scripted originals in production, plus 35 kids programs, 60 documentaries at various stages, 12 feature-length films and local-language productions in nine countries, according to The Hollywood Reporter.
Netflix is finding its footing in some new territories after launching in 130 countries at the beginning of the year. Part of that balancing act means spending loads of money to acquire more exclusive content and produce shows specific to certain countries and regions. And the costs have had an impact.
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The Los Gatos, Calif-company has racked up $2.4 billion in long-term debt as it pursues its ambitions, while also upping the cost of its standard subscription offering. And in its most recent quarterly letter to shareholders Netflix said it plans to raise additional capital via the high-yield bond market.
