The Biggest Studios Are Spending More on Content, Leaving Less Room for Smaller Players
New data from Ampere Analysis shows that more than 50% of the global content investment comes from just six companies.
The streaming industry is continuing to epitomize the mantra of “you’ve got to spend money to make money.” That’s the biggest takeaway from a new survey published by Ampere Analysis, which digs into the global content spend by entertainment companies. The top six content producers in the world will spend $126 billion on content in 2024, which will mark a new record high and will account for 51% of the entire global investment in content this year.
Key Details:
- Disney will account for 14% of all global content spending by itself this year.
- Of the $126 billion, $40 billion will be spent on subscription streaming services like Disney+, Paramount+ and Peacock.
- Netflix continues to be the biggest single investor in global streaming content outside of YouTube.
Ampere’s data found that the content spend from Comcast, Disney, Google, Netflix, Paramount Global, and Warner Bros. Discovery will reach a new record high when it hits the 51% of total content investment benchmark, besting 2020’s figure when the six companies combined to account for 47% of all global content as the COVID-19 pandemic crippled many smaller producers.
Disney will lead all companies, accounting for 14% of the global content spend by itself. Four of the six companies listed have multiple streams to dump their content dollars into; Comcast, Disney, Paramount, and WBD all have movie studios to fund, as well as linear TV channels and on-demand streaming services.
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Conversely, Netflix has no movie studios or linear channels to fund, nor does Google. The content budgets for both are mostly tied up in streaming, and Google’s outlay comes in the form of revenue-sharing deals for creators on YouTube. Netflix, meanwhile, has spent an average of $14.5 billion per year on original and acquired programming since the pandemic.
All in all, Ampere reports that $40 billion of the total $126 billion that will be spent by these six companies will be funneled to on-demand streamers like Disney+, Max, Netflix Paramount+, and Peacock.
The biggest takeaway from Ampere’s data is that the consolidation of the streaming world is proceeding more or less as predicted. There simply isn’t room in the streaming marketplace for hundreds of small-to-medium streaming services; three or four giant-sized streamers will likely be all that is left standing in a few years, and the companies that can afford to make big investments in content are the ones most likely to still be around when the market is done correcting. Numerous entertainment and streaming executives have been predicting this eventuality for years.
The data from Ampere clarifies this prediction. The biggest media companies are getting bigger, and accounting for more and more of the global investment in new content. That trend is unlikely to reverse itself, as smaller players continue to fall by the wayside and industry leaders try to cement their places at the top of the heap.
Disney+
Disney+ is a video streaming service with over 13,000 series and films from Disney, Pixar, Marvel, Star Wars, National Geographic, The Muppets, and more. It is available in 61 countries and 21 languages. It is notable for its popular original series like “The Mandalorian,” “Ms. Marvel,” “Loki,” “Obi-Wan Kenobi,” and “Andor.”