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Global investment in content to dip to decade low in 2023

Global content spending will increase by just 2% in 2023 from 2022. This, according to a study by Ampere Analysis, will represent the lowest growth in a decade, when discounting the COVID-driven slump of 2020.

Comparatively, media companies increased content spending by 6% to US$238 billion in 2022, driven primarily by subscription video-on-demand (SVoD) platforms, which spent over $26 billion on original content. 

Disney and Warner Bros Discovery are expected to overtake Comcast to become the leading investors in original content, while Netflix will continue SVoD spending, generating more than 25% of the worldwide original content investment.

For commercial and public broadcasters, content investment will continue to linger below pre-pandemic levels, driven by declines in broadcast TV advertising revenue stemming from wider economic weakness and the ongoing shift of viewers to streaming platforms. Ampere expects commercial broadcasters to face a 3% decline in content investment in 2023.

Hannah Walsh, Research Manager, Ampere, added, “SVoD services will still see an increase in total content investment in 2023 but a lesser 8% year-on-year growth compared to 25% in 2022.

“Services will continue to focus on original content to compete in a crowded, cost-sensitive market, but we are already seeing a shift in content commissioning to incorporate a greater volume of cheaper unscripted formats.”

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