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Content Spending

All articles tagged with #content spending

business1 year ago

Disney Plans $24B Content Investment for Next Year

Disney plans to increase its content spending to $24 billion in fiscal 2025, up from $23.4 billion in 2024, primarily due to rising costs in sports programming, including new contracts with the NFL and NBA. Despite the increase, Disney's entertainment spending may decrease as the company focuses on strategic investments, particularly in international markets, and aims to reduce content costs. CEO Bob Iger highlighted a cautious approach to investing outside the U.S. while prioritizing global content applications.

via Hollywood Reporter|
#bob-iger#business#content-spending
entertainment2 years ago

The costly consequences of Hollywood's streaming model ignorance

Hollywood studios are facing the consequences of not fully understanding the streaming model, as the economics of the media industry have been upended. Legacy media companies like Disney and Warner Bros. Discovery have struggled to compete with Netflix and are now grappling with the challenges of making streaming profitable. High licensing costs and low revenues per subscriber have caught up with studios, leading to job cuts, content cost reductions, and a focus on quality over quantity. The industry is now exploring various business models, including advertising, password-sharing crackdowns, and windowing content to different platforms, in an effort to piece together profits. The lack of transparency around streaming viewership data has also fueled contentious contract negotiations with writers and actors. As the industry seeks to make streaming profitable, it is turning to tried and true models like advertising and licensing content to other platforms, while also exploring hybrid models that combine subscription fees and ads.

via CNBC|
#content-spending#entertainment#hollywood
entertainment2 years ago

The Uncertain Future of Hollywood's Writers Amidst Strikes and AI Transformation

The job market for writers in Hollywood is expected to be bleak post-WGA strike, with tighter employment prospects for writers outside of A-level showrunner status. Content spending is slowing down at top networks and platforms, leading to a reduced number of scripted shows in the marketplace. The reduction in overall series production is seen as a necessary change, as there is an abundance of unseen and low-quality content. Additionally, the shift to streaming has resulted in reduced episode counts, impacting writers' compensation. The future of scripted shows on broadcast networks is expected to be narrower, but still offers better jobs for writers. The fight for better residuals in the streaming space is a major focus for the Writers Guild of America, and a renewed push towards traditional broadcast formats on streaming platforms is anticipated. Financial discipline and a decrease in expensive shows are expected as the industry faces changing economics.

via Variety|
#content-spending#entertainment#hollywood
business2 years ago

Paramount+ and Showtime merge, raise prices and launch new service next month.

Paramount+ and Showtime will merge in the US on June 27, resulting in a rebranding of the premium cable-TV network as Paramount+ with Showtime. The integration will also see an increase in pricing, with the premium tier increasing to $11.99 from $9.99. The move will help cut down on content spending and allow for the sharing of content between the two platforms.

via CNBC|
#business#content-spending#merger
business2 years ago

Netflix's Ad Tier Gains 5 Million Monthly Active Users.

Netflix's ad-supported tier, "Basic with Ads," has 5 million global monthly active users, according to the company's virtual upfronts presentation. The ad-based plan complements Netflix's existing ad-free offerings and costs $6.99 a month in the US. The company has yet to reveal actual subscriber figures for the ad tier or how much revenue it's generated so far. Netflix currently boasts 232.5 million global subscribers, but the company said ad-based users have more than doubled since early 2023, with more than a quarter of Netflix sign-ups now choosing the ads plan in countries where it's available.

via Yahoo Finance|
#ad-supported-tier#business#content-spending
finance2 years ago

Netflix Delays Password-Sharing Crackdown and Posts Mixed Results.

Netflix generated $2.1 billion in free cash flow in Q1 2022, a significant improvement from its negative cash outflow in previous years. The company is reining in content spending and raising subscription prices to improve its profit line, while also using its excess cash to buy back stock. As a result, Netflix raised its 2023 free cash flow guidance to "at least" $3.5 billion and is being seen as a cash flow play by Wall Street analysts.

via Yahoo Finance|
#content-spending#finance#free-cash-flow