Netflix and Amazon close content spending gap with top US broadcasters

Major US channel groups continue to lead the way in terms of overall content spend in 2017, but Amazon and Netflix are closing the gap. At the end of 2017 Amazon and Netflix spent a combined $11bn on acquired and originated video content. Netflix has already committed to increasing its spend on content from $6.2bn in 2017 to over $8bn (on a P&L basis) for 2018. Ampere forecasts the combined Netflix and Amazon spend to almost double over the coming years, passing $20bn by 2023. 

Over the last several years broadcasters and video platforms have invested increasing amounts in content as they look to jostle for supremacy and consumer eyeballs. Netflix and Amazon have been the most aggressive in investment in content, both in original production and acquisition, to grow their respective subscriber bases. However, more challengers are beginning to emerge as Facebook, Apple and Jeffery Katzenberg’s ‘New TV’ have all committed significant sums ($1bn+) towards video content investments in 2018 and beyond, further increasing the competition for the top talent and content.