Amidst multiple cost cutting measures, Disney is gearing up to increase its content spending budget for 2023. According to Ampere Analysis, Disney is expected to earmark $10.5 billion for original content, more than 20 other companies the media analyst firm included in its January report.
Other companies noted by the Ampere Analysis report include Warners Bros. Discovery, expected to spend $9.5 billion on original content, beating out Paramount, Comcast, and Netflix.
An increase in subscription video-on-demand (SVOD) numbers was the primary contributor to a 6 percent global spend in 2022, totaling $238 billion. However, this year Ampere predicts global content expenditure to grow by only 2 percent year-on-year. This is the slowest growth rate companies have seen in over ten years, sans 2020 when numbers shot up.
Traditional linear broadcasting has steadily seen declining numbers as more people cut the cable cord and switch exclusively to streaming platforms. Ampere predicts broadcast television content investment spends will decrease by 3 percent this year.
In the report, Ampere Analysis Research Manager Hannah Walsh said:
“SVoD services will still see an increase in total content investment in 2023 but a lesser 8 percent year-on-year growth compared to 25 percent in 2022. Services will continue to focus on original content to compete in a crowded, cost-sensitive market, but we are already seeing a shift in content commissioning to incorporate a greater volume of cheaper unscripted formats.”
Unscripted programming is expected to take on the bulk of new entertainment options as the writers’ strike continues, ceasing the creation of all new content and even pitches until negotiations are settled.
Sources report Disney is continuing to drive up subscription numbers for Disney+ by “refreshing their streaming strategy.” Changes include expanding its content collection to include Doctor Who and launching a new ad-supported tier plan last December. As for what new original content Disney is planning to release, there is no word yet on what is in store.