Macquarie Research goes on to predict that Netflix’s original content will increase to 60% in 2020, while only approximately 25% of Netflix’s content in 2017 was original.
All the original programming means that Netflix will have fewer licensing fees to pay, which could result in a savings of $2 billion.
While the originals have already cost Netflix a huge chunk of change, there’s a big silver lining for investors.
Shares of Netflix rose by 1.5% in the premarket session on January 2, according to CNBC, and the target price for shares increased to $220 from Friday’s $200, marking a 15% boost.