How Hollywood’s Horrible 2022 Impacted Content Spending
And 2023 doesn’t look any better.
2022 was not a good year for the entertainment industry: from Disney to Netflix to Warner Bros. Discovery, media and tech stocks were battered as faith in streaming waned, and subscribers’ growth stalled.
Variety Intelligence Platform analyzes the matter: Netflix reduced its expenses in 2022 by about 5 percent, from $17.70 billion in 2021 to $16.84 billion last year. Warner Bros. Discovery has yet to publicize its full-year report, but it is expected to produce an even more significant cut. Disney spending grew, but less than expected (29.9 billion instead of 33). NBCUniversal increased by only half as much as it had between the last pre-pandemic years. WBD spent $18.3 billion on content in 2022, a whopping 20 percent decrease from WarnerMedia and Discovery’s combined 2021 figures.
Only Amazon’s content spending grew big: $16.6 billion versus $13.0 billion in 2021. Prime Video programming like “The Rings of Power” and the NFL’s “Thursday Night Football” drove the increase.
Amazon’s behavior helped shield Hollywood’s turbulence. Still, the future is not bright: “Hollywood increasingly finds itself facing the thorny proposition of cutting costs without kneecapping streaming growth, and must-watch programming will remain an essential investment even as the free-spending days of the peak TV age come to an end for now,” writes Tyler Aquilina on Variety VIP+.
Source: Variety VIP+
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And 2023 doesn’t look any better.
2022 was not a good year for the entertainment industry: from Disney to Netflix to Warner Bros. Discovery, media and tech stocks were battered as faith in streaming waned, and subscribers’ growth stalled.
Variety Intelligence Platform analyzes the matter: Netflix reduced its expenses in 2022 by about 5 percent, from $17.70 billion in 2021 to $16.84 billion last year. Warner Bros. Discovery has yet to publicize its full-year report, but it is expected to produce an even more significant cut. Disney spending grew, but less than expected (29.9 billion instead of 33). NBCUniversal increased by only half as much as it had between the last pre-pandemic years. WBD spent $18.3 billion on content in 2022, a whopping 20 percent decrease from WarnerMedia and Discovery’s combined 2021 figures.
Only Amazon’s content spending grew big: $16.6 billion versus $13.0 billion in 2021. Prime Video programming like “The Rings of Power” and the NFL’s “Thursday Night Football” drove the increase.
Amazon’s behavior helped shield Hollywood’s turbulence. Still, the future is not bright: “Hollywood increasingly finds itself facing the thorny proposition of cutting costs without kneecapping streaming growth, and must-watch programming will remain an essential investment even as the free-spending days of the peak TV age come to an end for now,” writes Tyler Aquilina on Variety VIP+.
Source: Variety VIP+
Share:
Media Companies Spend Billions Chasing Netflix On StreamingItalian Documentary on Italian Fashion, On Sale at Berlin's European Film Market
