The children’s production industry may still be reeling from a downturn in commissions, but six of the biggest studios and streamers plan to invest $126 billion in content this year, according to Ampere Analysis.
The data firm predicts that Disney, Comcast, Google, Warner Bros. Discovery, Netflix and Paramount combined will account for 50.6% of all content spending in the TV and movie market this year, and in 2023. This will increase slightly from 47.5%.
Much of this investment is going into original programs. Since 2022, these six companies have invested a total of US$56 billion in this type of content, representing 45% of their combined spend.
Despite the theatrical and theater cuts, Disney is expected to be the biggest content spender this year at 14%, followed by Comcast, Google (largely through revenue-sharing deals with YouTube creators), and Warner Bros. Brothers Discovery, Netflix, Paramount.
According to Ampere, streamers are playing an increasingly important role in this regard as viewers move away from linear viewing to access the convenience and vast catalogs of SVOD platforms. This year, they will account for approximately 32% (US$40 billion) of total annual content spending (US$126 billion).
Unsurprisingly, Netflix is the streamer spending the most on content, spending an average of $14.5 billion annually since the pandemic. And given that they’ve secured the rights to NFL games and WWE games, there will probably be more next year.
More than half (52%) of Netflix’s 2024 content investment will be in non-US programming, with Paramount+ not far behind at 40%. This content is typically cheaper to produce and can effectively attract new, niche audiences.
Research manager Peter Ingram tempered Ampère’s findings with a sobering note that the numbers may not continue on an upward trajectory. “Looking forward, these top six providers will continue to account for the majority of spending, but overall growth will plateau as companies look to refocus their output.” This includes limiting commissioning volumes and prioritizing strategic investments and profitability to counter current challenges in the media market. ”
Image courtesy of Michael Henderson via Unsplash.
