Video streaming service providers Disney, Netflix, NBCUniversal, Warner Bros, Google and Paramount now account for more than half of the world’s total investment in new content, according to a new study by Ampere Analysis.
The companies are expanding their content production via a range of acquisitions, mergers and expansion into new categories, and are rapidly increasing their influence on the industry, the report noted.
According to Ampere, the top six content producers are expected to invest a combined $126 billion into new content production, accounting for 51.3% of the industry’s total investment, up from 47.2% during the height of the COVID pandemic in 2020.
Peter Ingram, a research manager at Ampere Analysis, said the studios and streaming providers’ ongoing investment into new programming is key to ensuring audiences remain engaged and entertained.
“We can expect that the content landscape will see low level growth in 2024 as production schedules recover from disruptions caused by the pandemic and the writers' and actors' union strikes," he added. .
It’s said that Disney leads the industry, throwing more cash at content production than anyone else in the world, with an investment of $35.8 billion expected this year. It’s followed by NBCUniversal, which plans to invest $24.5 billion this year, Google at $17.6 billion, Warner Bros. with $16.8 billion, Netflix with $16 billion and Paramount with $15.1 billion.
It’s notable that a significant portion of Disney’s content investments include what it pays for live coverage of various sports in regional markets like the U.S. If we’re only looking at content, such as movies and shows, for streaming services, the market leader is Google, which spends money on YouTube creators, and Netflix, which makes numerous Netflix Originals every year. All told, around $40 billion of the $126 billion spent on content is dedicated to streaming content, including that spent on theatrical films which debut in cinemas before becoming available to stream.
Disney operates a number of streaming platforms, including Disney+, Hulu and ESPN, while Warner Bros. runs Max and Discovery+. Meanwhile Paramount has both Paramount+ and SkyShowtime, which is co-owned with NBCUniversal.
Although Disney currently leads the way, its lead may be threatened by Netflix in future, as that company is set to expand its investment in sports coverage, with American football and WWE wrestling said to come to its platform next year.
The report also noted that the top six content producers may soon be joined by newer players such as Apple and Amazon, which have both created their own content studios and plan to step up their own investments in the business of entertainment.
Amazon acquired the MGM film studio in March 2022, and so we can expect increasing amounts of content to come to the Amazon Prime Video platform as a result of that investment.
