Make No Mistake, Content Spending Isn’t Going Down Anytime Soon | PRO Insight

Despite the messaging, streamers are increasing their programming budgets this year and those dollars should go to building franchises

After Netflix’s recent first-quarter earnings and the continued tumbling of financial markets, many believe content spending by the major streamers will go down. Wrong! Never before has there been more of an existential need for exclusive marquee content by all major streamers and media companies to break out of the pack and hold our attention (especially now, as we hold on more tightly to our collective wallets). Increasingly fickle consumers need to make snap decisions about what they watch in our increasingly overwhelming world of content. And that means one thing. Content spending will continue to rise as all players scramble to acquire the best of the best.

The ever-increasing massive content dollars speak for themselves. Disney has increased its 2022 content spend $8 billion (up to $33 billion), NBCUniversal is doubling its Peacock spend this year (up to $3 billion), and Netflix’s 2022 content spend is going up, not down (up to $18 billion). Amazon and Apple are also massively increasing their content spends. Not surprising for companies that have multi-trillion dollar valuations and where content is used as marketing to increase net promoter score (NPS), a metric for customer loyalty, and overall brand “stickiness” and consumer spending.

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