How much streaming platforms will spend on content in 2023 and Why?

Streaming platforms are expected to spend a record $136.4 billion on content in 2023, according to MoffettNathanson [i]. Financial analysts are calling the 1 percent increase in streaming content spending in 2023 "flat," especially compared to the 14 percent increase in 2022 and the 25 percent jump in 2021.  

Here is a breakdown of how much Top 10 biggest streaming platforms are expected to spend on content in 2023:

Rank	Platform	Content spending	Source
1	Netflix	17.0	Ampere Analysis
2	Amazon Prime Video	15.0	MoffettNathanson
3	Disney+	13.0	Variety
4	HBO Max	4.5	The Hollywood Reporter
5	Paramount+	2.0	Ampere Analysis
6	Peacock	1.5	MoffettNathanson
7	Discovery+	1.0	Variety
8	Apple TV+	1.0	The Hollywood Reporter
9	Hulu	1.0	Variety
10	YouTube TV	1.0	MoffettNathanson

 

 

Why do platforms spend billions on Content?

The increase in spending on content is being driven by a number of factors, including:

·         The growing competition in the streaming market: The streaming market is becoming increasingly competitive, and streaming platforms need to invest in content in order to compete with each other. Every major media company now has its own streaming platform, and they are all competing for subscribers. This competition in growing over time.

·         The increasing demand for high-quality content: Viewers are now expecting streaming platforms to offer a wide range of original and licensed content, and they are willing to pay more for it. Quality matters always.

·         The expansion of streaming platforms into new markets: Streaming platforms are now available in over 190 countries, and they are investing in content that will appeal to viewers in these markets.

·         To attract new subscribers: Streaming platforms need to offer a wide range of high-quality content in order to attract new subscribers. By investing in content, these platforms can create a more appealing offering for potential subscribers.

·         To retain existing subscribers: Streaming platforms also need to invest in content in order to retain existing subscribers. Viewers are constantly looking for new and exciting content to watch, and if a streaming platform doesn't offer enough new content, viewers may be more likely to cancel their subscription.

The increase in spending on content is a good thing for viewers. It means that there will be more and more high-quality content to choose from. However, it also means that streaming platforms will need to continue to raise prices in order to cover their costs. Some analysts believe that the spending will be even higher than the figures listed above. However, even the most conservative estimates show that streaming platforms are investing heavily in content.

This investment in content is paying off. Streaming platforms are now the most popular way to watch TV and movies. In 2022, streaming platforms accounted for over 30% of all TV viewing in the United States. This number is expected to continue to grow in the coming years.

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[i] https://www.indiewire.com/features/general/what-netflix-disney-streamers-spend-on-content-2023-1234819665/