Media giants’ content spend reached $210bn in 2024 – KPMG

In a new report from KPMG, the annual content spend by 12 leading U.S.-based media companies reached an estimated $210 billion in 2024, marking a steady rise in investments despite economic pressures and industry shifts.

This figure, drawn from public filings and market analysis, highlights how media giants are channelling funds into production, programming, and rights to capture audiences in a fragmented landscape. The report, titled “The Future of Content Spend and Business Models in Media,” provides a snapshot of an industry adapting to streaming dominance, user-generated content, and emerging technologies. The breakdown of 2024 investments shows Comcast leading with $37 billion, covering programming and production across its networks and affiliate fees. YouTube follows at $32 billion, driven by creator revenue shares and ad-supported models. Disney allocated $28 billion, including content amortisation and licensed rights, for its platforms like Hulu.

Amazon invested $20 billion, while Netflix spent $17 billion on original and licensed productions. Paramount committed $15 billion, and Meta matched that with $15 billion focused on social media content ecosystems. Warner Bros. Discovery spent $14 billion, Spotify $12 billion on music and podcasts, Fox $9 billion, Apple $7 billion, and Sony $5 billion. These estimates include a range of costs from films and TV series to sports rights and music licensing, totalling the $210 billion figure.

This level of spending reflects a decade of transformation in the media sector. Historically, the industry saw rapid growth fueled by the rise of streaming services. Before 2020, platforms like Netflix and Amazon disrupted traditional models by investing heavily in direct-to-consumer offerings.

The COVID-19 pandemic accelerated this trend, as lockdowns boosted demand for home entertainment. Content spend among these top players grew from $142 billion in 2020 to $173 billion in 2021, then to $196 billion in 2022.

By 2023, it reached $202 billion, before climbing to $210 billion in 2024. This represents a compound annual growth rate of 10 per cent since 2020, though the pace slowed to 4 per cent between 2022 and 2024 amid strikes by writers and actors in 2023 and a broader focus on profitability. The trend in content spend indicates a maturing market where investments are not just increasing but also diversifying.

While overall growth has moderated post-pandemic, spending remains resilient as content serves as a key differentiator in competition for viewers. Sports rights, for instance, continue to escalate, with companies bidding aggressively for live events that draw reliable audiences. Scripted and reality programming, however, have seen slower growth as firms prioritise efficiency.

The report notes that the concept of “peak content” – the idea that production volumes have maxed out – is misleading. Instead, the definition of content is expanding to include user-generated material on platforms like YouTube and TikTok, as well as free ad-supported streaming TV services such as Pluto TV and Tubi. These formats attract ad revenue without the high upfront costs of traditional productions, allowing total spend to rise even as some areas plateau.

As content types evolve, the industry is witnessing a blend of formats to meet varied audience preferences. High-budget films and TV series remain staples, but user-generated content is growing as a distinct category. This includes short-form videos created by individuals or influencers, often monetised through ad shares on social platforms. The convergence between professional productions and amateur content is evident in how studios incorporate creator-driven elements for authenticity and agility.

For example, platforms are curating user uploads alongside scripted shows, blurring lines and expanding reach. This evolution responds to shifting viewing habits, where consumers toggle between long-form narratives on streaming services and quick clips on mobile apps. The report predicts no single format will dominate; instead, a mix will persist, supported by data analytics that track engagement and guide investments.

Artificial intelligence is poised to reshape this landscape, with implications for costs, creation, and distribution. AI tools can compress production timelines by automating tasks like script generation, editing, and even dialogue creation. This could lead to faster turnaround for series or interactive formats, such as choose-your-own-adventure stories. KPMG’s analysis suggests AI will reduce certain expenses, making elements like visual effects cheaper and quicker.

However, overall spend may not drop significantly in the short term, as talent fees – which account for 20 to 30 per cent of budgets – remain tied to human stars and creators. AI is unlikely to replace marquee talent, such as actors in blockbuster films, but it can augment processes. Beyond production, AI enhances personalisation by tailoring recommendations and ad targeting, improving viewer retention.

Frank Albarella, Jr., a KPMG managing director, stated in the report that AI is rewriting the content playbook across creation, distribution, and monetisation, urging leaders to experiment strategically for competitive edges.

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