SVOD Big Spenders

Netflix and Amazon spent $7.5 billion on programming last year—more than CBS, HBO, Turner and most countries, including South Korea and Australia, writes global market analyst firm IHS Markit.

That’s not surprising given the deluge of new content from the leading streaming services.

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The firm’s upcoming report, World TV Production Report 2016, found that Netflix and Amazon more than doubled their annual investment in programming between 2013 and 2015. Amazon spent $1.22 billion in 2013 and ratcheted up to $2.67 billion in 2015. Likewise, Netflix spending rose from $2.38 billion to $4.91 billion. Hulu has also increased its investment in original programming and acquisitions, IHS reported, without divulging a number.

“The levels of investment we are seeing from Netflix and Amazon are only topped by Disney ($11.84 billion) and NBC ($10.27 billion),” said Tim Westcott, senior principal analyst at IHS Technology.

“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,” Westcott said. “However, it’s premature to declare that the era of linear TV is already over.”

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So far this year, per IHS, there have been 113 scripted basic cable shows, compared to 78 on the networks, 31 on premium cable, and 57 online. Online scripted US TV shows rose from three in 2012 to 41 in 2015.

The US also reigns supreme in worldwide programming.

“The primacy of the US in the worldwide programming market is clear,” Westcott said. “We estimate that in 2015, the US represented 33 percent of worldwide expenditure on TV programming, with $43 billion invested across free-to-air, pay TV and online.”

To learn more, visit www.IHSMarkit.com.

About Larry Greenberg

A former local beat reporter and film critic, co-founder Lawrence Greenberg has more than 25 years’ experience as a writer and public relations executive.

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