Streaming Wars Drive Media Groups To Spend More Than $100 Billion on New Content

The top eight US media groups plan to spend at least $115bn on new movies and television shows next year in pursuit of a video streaming business that loses money for most of them. From a report: The huge investment outlays come amid concerns that it will be harder to attract new customers in 2022 after the pandemic-fuelled growth in 2020 and 2021. Yet the alternative is to be left out of the streaming land rush. "There is no turning back," said media analyst Michael Nathanson of MoffettNathanson. "The only way to compete is spending more and more money on premium content." The Financial Times calculated the planned expenditures based on company disclosures and analyst reports. One entertainment executive called them "mind-boggling." Most of the companies -- a list that includes Walt Disney, Comcast, WarnerMedia and Amazon -- are set to rack up losses on their streaming units. Including sports rights, the aggregate spending estimate rises to about $140bn. Disney's investment in streaming content is likely to grow 35-40 per cent in 2022, according to estimates by Morgan Stanley. The company's spending on all new movies and TV shows is expected to reach $23bn, though the number rises to $33bn including sports rights -- up 32 per cent from its total content spending in 2021 and 65 per cent from 2020.

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