Netflix has turned into a pretty big company. In fact, they are so big that they are part of a popular phrase these days. As the kids say "Netflix and chill". Sort of like "Google it", in regards to Google which is now part of Alphabet. Netflix started out as a company that would mail you DVD's of movies to watch, and you can mail them back when you're done. It was like Blockbuster Video without the physical stores, before it eventually filed for bankruptcy. With the digital age, Netflix turned to streaming content, and they have a ton of it. But not all of their content are from licensees.
In the past few years, Netflix has been working on their own original content that users are able to stream. Including things like Fuller House, House of Cards, Orange is the New Black and many others. In fact, they are set to distribute over 600 hours of their own content this year alone. In a roundtable with The Hollywood Reporter, Netflix's head of content Ted Sarandos, talked about why they are spending so much on original content, while also defending why they are spending that much. Sarandos talked about how Netflix has a close relationship with their users, and how it's very easy to cancel Netflix - obviously something that they don't want to have happen - and so they need to take chances to keep their customers around as well as adding new ones. That's where original content comes in.
Sarandos also noted that part of their business mandate is making "event television" and obviously that isn't a cheap thing to do. He stated that they aren't competing against sitcoms that you'll find on networks like ABC, NBC, CBS and others. But instead they are competing against Pokemon GO, and the $200 million blockbuster movies - like Suicide Squad.
This year has been a big year for Netflix. Other than releasing over 600 hours of original content, the company also expanded to 130 additional countries and is now available in virtually every country, where they aren't blocked (like China). That was a pretty big deal, and has helped them grow exponentially in such a short period of time.