Netflix Increasing Marketing Budget to $2 Billion This Year

Netflix is increasing its marketing budget to $2 billion this year, up from $1.3 billion in 2017, with 80 original film and television projects in production, company executives told analysts in a conference call. The marketing budget is separate from the $8 billion Netflix has said it will spend this year on acquiring and producing original content. The increased spending followed Netflix nearly tripling its net income to $186 million in Q4 ended Dec. 31 as revenue rose 32.6% to $3.28 billion. The gain in net income came despite Netflix taking a $39 million write-down on two projects tied to actor Kevin Spacey, who faces allegations of sexual harassment. Production of the sixth and final season of House of Cards, which featured Spacey, was suspended in October. The other project that was written down was Gore, a film about Gore Vidal that Spacey was co-producing. Netflix’s revenue jumped 32.6% to $3.28 billion as the service added 8.33 million net subscribers in Q4, including 6.3 million international markets and 1.98 million in the U.S. Netflix ended Q4 with 110.6 million paid members, up from 89 million a year ago.

Contact:

Netflix, David Wells, Chief Financial Officer, 408-540-3700

Executives:

Mark Kingston, Vice President of European Licensing, Retail Sales and Trade Marketing at Nickelodeon and Viacom Consumer Products EMEA, promoted to Senior Vice President International, replacing Ronald Johnson, who left the company… Helena Mansell-Stopher, ex-Bulldog Licensing, named Director of Consumer Products for the UK at National Geographic Partners.

Contacts:

Nickelodeon and Viacom Consumer.  Products, Mark Kingston, SVP International, +44 20 7462 1000

National Geographic Partners, Helena Mansell-Stopher, Consumer Products Dir.-UK, +44 20 3567 1500

Agents

CPLG is handling licensing for animated children’s program “Sunny Bunnies,” producer Digital Light Studios shifts to an outside agency for the first time. Sunny Bunnies, which consists of 26, 3.5-minute episodes and has a third season in production, is aimed at 3-6 year olds in featuring five fluffy balls of light that appear wherever there is a light source. It debuted on the Disney Channel in Russia in 2015 and has a YouTube channel with 340,000 subscribers Digital Light previously handled licensing internally, having landed agreements with Whitehouse Leisure (amusement park plush) and Redan Publishing (promotional activity pages in children’s magazines)… Lisle Licensing has signed to represent the Magic Box Toys’ new SuperZings collectible figures which hit retail shelves in the UK this month… Maurizio Distefano now represents the Tetris brand in 10 European countries including Hungary, Poland and Czech Republic with an eye toward expanding its reach in apparel and housewares… The Brand Liaison is handling licensing for EmojiOne Inc. as the digital emoji supplier moves to expand its consumer products business into apparel and home décor. EmojiOne recently secured new agreements with a range of companies including Sony, Verizon and Intel.

Contacts:

The Brand Liaison, Steven Heller, Pres., 855-843-5424 x702,steven@thebrandliaison.com

CPLG, Steve Manners, EVP, +44 20 8563 6111, smanners@cplg.com

Digital Light Studios/Media IM, Maria Ufland, Managing Dir. +375 17 294 54 63

Lisle Licensing, Francesca Lisle, Managing Dir., +44 1037 586237

Maurizio Distefano Licensing, Maurizio Distefano, Founder, +39 0131 820500