Ampere: Growth in Content Investment to “Slump” in 2023

Ampere Analysis is forecasting that global content expenditure will increase by just 2 percent this year, the lowest growth in more than a decade (other than the Covid-19-induced contraction in 2020).

This forecast is in stark contrast to 2022, during which global content spend is projected to have grown by 6 percent to $238 billion, driven primarily by SVOD platforms (which collectively spent over $26 billion on original content in 2022).

Ampere cites that economic headwinds across the globe will put pressure on household spending and advertising investment, leading companies to implement cost-saving measures and reduce content expenditure.

In 2023, Disney and Warner Bros. Discovery will overtake Comcast and its subsidiaries to become the leading investors in original content, with Disney reaching $10.5 billion and Warner Bros. Discovery exceeding $9.5 billion. Netflix will continue to lead dedicated SVOD spend, contributing over 25 percent of global SVOD original content investment.

Content investment by commercial and public broadcasters continues to sit below pre-pandemic levels, driven by declines in broadcast TV advertising revenue from wider economic weakness and the ongoing shift of audiences to streaming platforms. In 2023, commercial broadcasters are expected to face a 3 percent decline in content investment.

Hannah Walsh, research manager at Ampere Analysis, said: “SVOD services will still see an increase in total content investment in 2023 but a lesser 8 percent year-on-year growth compared to 25 percent in 2022. Services will continue to focus on original content to compete in a crowded, cost-sensitive market, but we are already seeing a shift in content commissioning to incorporate a greater volume of cheaper, unscripted formats.”