×

Amazon is 'awfully scary,' says Netflix CEO Reed Hastings

  • Netflix CEO Reed Hastings sees Amazon as an "awfully scary" competitor.
  • The company is prepared to spend more money on original content and licensing to get more subscribers. It's projected to spend $6 billion this year.

Netflix CEO Reed Hastings came on CNBC's "Squawk Alley" on Wednesday to talk about a variety of topics, including his thoughts on Amazon and what he's currently watching. Here are some key takeaways.

Netflix fears Amazon

Hastings sees Amazon as an "awfully scary" competitor, though he stopped short of saying it was Netflix's biggest threat.

"Everything Amazon does is so amazing," he told CNBC. "How are they doing so many business areas so well? They are trying to repeal the basic laws of business."

"They are awfully scary I would say," Hastings added.

Netflix is prepared to spend more money

Netflix is ready to spend $6 billion on original content in 2017 — and the budget is going to go up "a lot" in the future, Hastings said. He also pointed out that the company has kept its base price at $7.99 for eight years, although he didn't say if it will increase prices in the future.

"As we grow the membership base, we want to grow the current budget," he said. "There are so many great shows we don't have yet. We are going to continue as we growth the membership base to try and get more shows and more movies."

The rate of cord cutting hasn't affected the company's projected growth

Netflix isn't the reason why people are quitting cable, Hastings said.

"Very few people have cut the cord," he said. "We have seen maybe 2 million or 3 million of 50 cut the cord. We don't think of it as a big overlap that we are driving cord cutting. In general, it is like 2 to 3 percent per year, like broadcast ratings over the last 30 years. It will take a slow, secular decline, then they will adjust the economics.

Hastings has "obscure" taste in movies

What's on Hasting's Netflix queue? The CEO just watched the Swedish film "Force Majeure," a drama-comedy about a family that has to piece itself together after the father runs away instead of saving his family during a natural disaster.

"I have obscure taste," Hastings admitted.

Watch: Hastings on cord-cutting