Netflix (NASDAQ: NFLX) will spend about $15 billion in cash producing and licensing content for its 160 million global subscribers this year. Nearly two-thirds of that will show up on the income statement -- $9.2 billion -- by analyst Michael Nathanson's estimate.
But Netflix is about to face a considerable amount of competition from some of the biggest media companies in the world. Disney (NYSE: DIS) has already launched Disney+, and it's been a big hit with consumers. AT&T (NYSE: T) and Comcast (NASDAQ: CMCSA) are launching their respective streaming services in the first half of next year.
All three of those companies spend more on content across their film and television divisions than Netflix. Both Disney and AT&T outlined their plans to increase their content spending with a focus on streaming during recent investor days. Comcast is sure to grow content spending over the next few years as well. If Netflix wants to keep its subscribers from leaving, it can't stop spending on content.