The kids production industry might still be reeling from a commissioning slowdown, but six of the biggest studios and streamers are on track to invest US$126 billion in content this year, according to Ampere Analysis.
The data firm is forecasting that Disney, Comcast, Google, Warner Bros. Discovery, Netflix and Paramount will collectively account for 50.6% of all content spend in the TV and film market this year, up slightly from 47.5% in 2023.
A lot of this investment is being funneled into original programming. Since 2022, these six companies have invested a total of US$56 billion into this type of content, representing 45% of their total combined spend.
Despite cutbacks in its linear and theatrical divisions, Disney is expected to be this year’s biggest content spender at 14%, followed in order by Comcast, Google (largely through its revenue-sharing deals with YouTube creators), Warner Bros. Discovery, Netflix and Paramount.
Streamers are playing an increasingly critical role on this front as audiences move away from linear to access the convenience and vast catalogues of SVOD platforms, Ampere says. This year, they’ll be behind roughly 32% (US$40 billion) of the total annual content spend (US$126 billion).
Unsurprisingly, Netflix is the streamer that spends the most on content, averaging US$14.5 billion a year since the pandemic. And this will probably increase next year, given that it has secured rights to NFL games and WWE matches.
More than half (52%) of Netflix’s 2024 content investment has gone into non-US programming, and Paramount+ isn’t that far behind at 40%. This content is typically cheaper to produce and effective at drawing in new and niche audiences.
Research manager Peter Ingram tempers Ampere’s findings with a sobering note that the numbers might not stay on an upward trajectory: “Looking forward, while these top six providers will continue to account for the majority of spend, overall growth will plateau as companies look to refocus their output. This will include limiting commissioning volumes and prioritizing strategic investments and profitability to counter the current challenges of the media market.”
Image courtesy of Micheile Henderson via Unsplash.
