Global content spend to return to ‘mild growth’ following challenging 2023

Global content spend will increase slightly in 2024

Global content spend will increase by 2% year-on-year, following a plateau in content investment growth in 2023, according to UK-based research firm Ampere Analysis.

Last year was predicted to deliver comparable growth but the writers and actors strikes in the US instead led to a 2% decline relative to original expectations.

In 2024, broadcasters and streaming services’ revival of postponed productions will steady the flow of content and push global content spending back into mild growth.

Ampere’s analysts anticipate the industry will reach US$247bn in 2024, up on 2023’s US$243bn.

Election-related investment and a return to production will boost spend as the industry begins to recover from a challenging year in 2023, when various factors combined to bring the peak TV era to an “abrupt end” , as reported by C21 earlier this week.

The number of US scripted series released last year plummeted 24% to 481, down from 633 in both 2021 and 2022. Unsurprisingly, the volume of scripted shows released in 2023 was impacted by Hollywood’s dual writers and actors strikes, which shuttered most production from May until November.

However, London-based research firm Ampere said that even when putting the strikes aside, SVoD commissions are in “terminal decline.”

Meanwhile, despite production reaching a near-complete halt in the US, global streaming services were able to weather the storm and continue a steady delivery of new original content in 2023 with the help of non-US productions.

Heavier investment in original shows and movies from markets including Germany, India and South Korea helped boost global streaming service’s expenditure on original content to over US$27bn, an increase of 13% year-on-year.

With a continued focus on international productions, the delayed release of US original titles, and an increased desire for sports rights, global streaming services are set to increase their total content spend by 7% in 2024 to US$46bn.

Hannah Walsh, principal analyst at Ampere Analysis, said: “2023 was a worse than expected year for content spend due almost entirely to the Hollywood strikes. The good news is we can look forward to a small recovery of 2% as production resumes and the US election approaches.

“Global streaming services are forecast to increase total content investment by 7% in 2024 and thus remain key for content spend growth. However, it’s not all rosy as many studios look to cut back on theatrical releases, and broadcasters cut spending due to ongoing declines in TV advertising.”