Merged Disney-Fox & Comcast-Sky to Spend $43 Billion on Content

Ampere Analysis is reporting that following the mega-mergers of Comcast and Sky and Disney and Fox, $2 of every $10 spent on content worldwide will now come from these two entities.

In the U.S., nearly $4 in every $10 spent on content will be from the two media behemoths.

According to Ampere, the combined projected content spend of the two merged companies will reach $43 billion by the end of 2018. Disney-Fox will have spent $22 billion on originated and acquired content. For Comcast-Sky, it will be a little less at $21 billion. This is more than the combined outlay of the next 10 largest content spenders in the U.S., including Netflix and Amazon.

Daniel Gadher, analyst at Ampere Analysis, said: “To some extent, the increasing level of consolidation is a reaction to the growing power of online video platforms. Companies such as Netflix and Amazon continue to invest significantly in content, a trend which shows no signs of abating. We expect Netflix to spend over $8 billion on a P&L basis by the end of 2018, and the streaming giant has repeatedly stated it will continue to boost its content budget. Prior to the recent mergers, Netflix was on course to catch, and overtake, the top Hollywood studios by content spend. However, in light of the two new combined entities, Netflix would now need to triple spend to achieve this feat.”

Gadher added: “One implication of this consolidation is the effect on independent producers. With a shrinking number of content acquirers in the market, the competition for rights will diminish, and this will inevitably impact the indie sector’s ability to negotiate favorable deals.”