Ampere Analysis is predicting that in 2023, global content expenditure will increase by just 2% year-on-year.

This would represent the lowest growth in over a decade (excluding the COVID-driven slump of 2020).

This is in contrast to 2022 during which global content spend is projected to have grown by 6% to $238 billion, driven primarily by SVoD platforms. Despite some degree of caution in the second half of last year, SVoD services collectively spent over $26bn on original content in 2022.

Ampere says that in 2023, economic headwinds will put pressure on household spending and advertising investment, leading companies to implement cost-saving measures and reduce content expenditure. But the picture isn’t uniform across media groups – some will continue to drive investment through 2023, while others will cut back.

Ampere says that Warner Bros. Discovery will overtake Comcast to become the leading investors in original content. In 2023, Disney and newly formed Warner Bros. Discovery will overtake Comcast and its subsidiaries to become the leading investors in original content—Disney reaching $10.5bn and Warner Bros. Discovery exceeding $9.5bn. Netflix will continue to lead dedicated SVoD spend, contributing over 25% of global SVoD original content investment.

Ampere also says that commercial broadcasters will face a 3% decline in content spend. Content investment by commercial and public broadcasters continues to linger below pre-pandemic levels, driven by declines in broadcast TV advertising revenue stemming from wider economic weakness and the ongoing shift of audiences to streaming platforms. In 2023, commercial broadcasters are expected to face a 3% decline in content investment.

Hannah Walsh, Research Manager at Ampere Analysissays: “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.”

Jon Creamer

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