Streaming giants to invest $42 billion in original and acquired content in 2023
By Kingsley Odii
Major global streaming platforms like Netflix, Amazon Prime Video, Disney+, Apple TV+, Paramount+, and HBO Max are set to invest a staggering $42 billion in original and acquired film and TV content in 2023.
While this reflects a slower rate of growth compared to the previous year, with a 7% increase as opposed to 24%, high-budget original shows and movies in popular genres such as crime and thriller, sci-fi and fantasy, and comedy continue to drive this growth.
According to a report by Ampere, out of the $42 billion, 90% of the spending is projected to go toward scripted TV series and films, with crime and thriller taking the lion’s share of $12 billion. Additionally, sci-fi and fantasy, as well as comedy, will receive substantial investments.
This emphasizes that high-budget scripted content remains the most effective tool in attracting and retaining subscribers. While Netflix and Amazon Prime Video have taken a balanced approach to genre allocation, catering to a wide range of demographics due to their scale, other players in the industry have adopted more targeted strategies.
Apple TV+, for example, the report notes, has dedicated 40% of its budget to crime and thriller titles, building on the success of shows like “Slow Horses” and “Severance.” Meanwhile, Disney+ has focused on sci-fi and fantasy and children and family genres, leveraging popular franchises like “Star Wars,” MCU, and Pixar.
Ampere reports that spending on unscripted content is set to reach $4.9 billion in 2023, growing by 22% year-on-year, outpacing the overall increase in spending by global streamers. Documentaries have expanded to include formats like dating, talk shows, and game shows.
While exclusive original titles have fueled the growth of content budgets for SVOD platforms, Neil Anderson, senior analyst at Ampere Analysis said in a statement, “In 2023, we forecast that major global SVOD platforms will collectively invest $42 billion in film and TV content. The moderated spending growth rate in comparison to previous years underscores the maturity of the SVOD market and the importance of strategic spending across genres.”
“At $15 billion, Netflix will retain its position as the top investor in global streaming content, albeit with a modest 2% increase. Meanwhile, rivals such as Disney+, Paramount+ and Apple TV+ are poised for more substantial budget expansions, projecting year-on-year increases exceeding 10%,” added Andserson.
In addition, Ampere predicts that content acquisition strategies will play an increasingly vital role. The content acquisition spend for major streaming platforms is expected to grow by 5% next year, reaching $14.8 billion.
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