With Subscriber Growth Slowing, Media Groups Spend $115B On Streaming Content – PYMNTS.com

The highest eight U.S. media teams will spend at the very least $115 billion on new content material — whilst video streaming loses them cash, Monetary Instances (FT) reported Tuesday (Dec. 28).

Whereas there are considerations that it would change into tougher to get new prospects in 2022 after the large development of the previous couple of years of the pandemic, firms additionally don’t need to miss out on the motion. Michael Nathanson, a media analyst, stated there’s “no turning again” and that the principle means ahead would encompass more cash spent on content material.

Per the report, many of the listed firms, together with Walt Disney, Comcast, WarnerMedia and Amazon, will see losses on streaming items, with mixture spending hitting round $140 billion, together with sports activities.

FT writes that Disney’s streaming investments will probably develop 35-40% in 2022, with spending on new motion pictures and TV hitting $23 billion. That can embody a brand new model of “Pinocchio,” one other “Vehicles” sequel and extra Star Wars content material.

John Sloss, a companion with the legislation agency Sloss Eckhouse Dasti Haynes, stated it was “mindboggling” how a lot cash was being spent by varied firms on streaming content material.

That stated, subscriber development has been lagging for Netflix, Disney and others. Netflix has stated this may be chalked as much as COVID-related manufacturing delays making for much less new content material, which has been a problem for many of the business.

Netflix is ready to spend over $17 billion on content material subsequent 12 months,

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