Netflix Inc. is spending hundreds of millions of dollars to produce big-budget films as it tries to shore up its subscriber base and push further into territory once controlled by major Hollywood studios.
The streaming giant is investing over $520 million to make three big-budget films, said people familiar with movie budgets. None of those movies is likely to get the kind of wide theatrical release typically used to make such substantial investments pay off.
Earlier this month, Netflix NFLX, -0.92% agreed to spend nearly $200 million to make the Dwayne Johnson action movie “Red Notice,” which will be filmed next year at exotic locations and also stars Ryan Reynolds and Gal Gadot, the people said. In addition, a person familiar with the matter said, Netflix plans to release later this year “6 Underground,” a Michael Bay-directed action film that is costing about $150 million, and Martin Scorsese’s “The Irishman.”
The latter film might be the company’s riskiest bet. “The Irishman,” a historical drama likely to appeal only to adults interested in serious subject matter, costs as much as some all-ages action-adventure movies because of cutting-edge visual effects that allow stars including Robert De Niro, Al Pacino and Joe Pesci to appear at different ages. People close to the picture said Netflix’s total commitment is at least $173 million, while others close to the film offered estimates above $200 million, making “The Irishman” the most expensive adult drama in recent history.
Netflix has previously said movies attract about one-third of its total viewership, while television series account for the rest. It is betting the new productions will help retain its more than 150 million existing subscribers and attract new ones, whose monthly fees — rather than ticket sales — generate the company’s revenue.
An expanded version of this report appears on WSJ.com.
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