CFO David Wells, noting that the internet video subscription now has 104 million customers worldwide, said that the economics of Netflix’s model could support such unheard-of production budgets given its global audience base.
“Certainly, we can support that level of quality if the [audience] is there,” said Wells, speaking Tuesday at Goldman Sachs’ Communacopia conference in New York City.
Wells, it should be pointed out, was speaking entirely hypothetically. But he said as Netflix looks to capture potentially billions of global customers, such sky-high TV productions are in the realm of possibility. “Content is becoming more global,” he said. “People are becoming more connected.”
For 2016, Netflix has said it expects to spend about $6 billion on content (including original productions), with that rising to about $7 billion next year. Much of that spending has been funded by debt and is accounted