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With nearly 64 million households in the US alone now streaming video content, the pressure to provide content has increased not only for streaming services but for traditional TV providers as well. Indeed, global spending on TV, film and sports content has increased by 65% between 2008 and 2018, with most of that growth occurring in the past 5 years, per data from Ampere Analysis.

Spurred by the increased competition from streaming services, TV companies have reportedly increased their spending on content beyond historical levels in the 5 years between 2013 and 2018, with the $26 billion spent in that time frame accounting for more than half of the $49 billion in total content expenditure growth.

That being said, subscription OTT services top the list of the biggest spenders on acquired video content in 2018. Netflix leads the pack with $6 billion spent on acquired content in the 27 markets (which represent 80% of global content spend) analyzed, followed by Amazon ($4.4 billion) and Hulu ($2.7 billion). This is compared to TV networks such as Fox that spent $2.1 billion to acquire content and Disney’s $1.9 billion, which is one-third of Netflix’s expenditure.

As traditional networks like Disney and NBC roll out their own video streaming services and opt to retain their own content in lieu of licensing it out, a shift towards spending on original content has occurred. Per Ampere Analysis’ data, Netflix spent $1.5 billion on original content in 2018 and has some 300 new series yet to be released.

Past studies show that the push towards original content appears to be working. Last year, a survey from Deloitte found that about half of SVOD service subscribers strongly agreed that they value the quality of original content, while a more recent survey from TiVo revealed that 2 in 5 adults in North America turn to Netflix for new content.

About the Data: Results are based on data taken from 27 territories worldwide, representing 80% of content spend.

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