Only Disney and NBCUniversal are spending more on creating original content than Netflix and Amazon, a new report says, with the two streaming platforms’ spending exceeding stalwarts like CBS, HBO and Turner.
World TV Production Report 2016, a forthcoming report by IHS Markit, said that in 2015, Netflix ($4.91 billion) and Amazon ($2.67 billion) were outspent by just Disney ($11.84 billion) and NBC ($10.27 billion). The streamers, since 2013, each has more than doubled spend on original content from $2.38 billion and $1.22 billion respectively, with promises of higher spending in 2016 and 2017. In fact, Netflix CFO David Wells recently said the company wants to increase the amount of original content it has in its library until it reaches about 50% of all content.
“In what Netflix calls the era of internet TV, more and more consumers are watching content online, shaking the foundations of the traditional TV industry,” said Tim Westcott, senior principal analyst at IHS Technology. “However, it’s premature to declare that the era of linear TV is already over, and Netflix and Amazon have come hard on the heels of a boom in production of original drama and comedy by the likes of AMC and FX in the US.”
The report said basic cable networks, meanwhile, aired 148 new scripted shows in the U.S., in 2015 up from 138 the year before and 96 in 2013. So far this year, 113 scripted basic cable shows have aired, compared to 78 on the networks, 31 on premium cable, and 57 online.
Globally, spend on content increased more than 8% in 2015 Y/Y, to $129.8 billion from $128.7 billion, with about a third – more than $43 billion – coming from the U.S. alone. Canada spent about $3.4 billion on content.
Spending by Netflix and Amazon was calculated as part of the global spend.
Western Europe accounted for $38.6 billion of content spend, with the United Kingdom at $10.7 billion, followed by Germany ($7.3 billion), France ($6.6 billion) and Italy ($4.6 billion).
In APAC, Japan is the largest spender at $9.8 billion, followed by China ($8.4 billion), South Korea ($2.6 billion), Australia ($2.4 billion) and India ($2.4 billion).
LatAm’s biggest content spenders are Mexico ($1.5 billion) and Brazil ($1.4 million).
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