Global entertainment content production and licensing spending jumped more than 16% to $ 220 billion in 2020 despite the industry shutting down due to the COVID-19 pandemic, according to a study released by the Purely Capital fintech platform. Next year, television and film producers are expected to shell out $ 250 billion.
The Walt Disney Company was the biggest spender with a gross total of $ 28.6 billion for 2020 in North America. Warner Media and Discovery, which are combined in a multibillion-dollar merger announced in May, spent $ 20.8 billion last year. Netflix ranked third with $ 15.1 billion in spending. Amazon.com announced in May that it would buy MGM film and television studio for $ 8.45 billion. Combined business spending in 2020 was $ 11.8 billion. The total spending of the four companies totaled $ 76.3 billion, close to the global spending outside of North America. Other big spenders include Fox ($ 11.3 billion), Comcast ($ 9 billion) and ViacomCBS ($ 7.5 billion), Purely said.
“What is remarkable about these record numbers is that industry spending has not yet reached a natural peak, âsaid Purely Capital founder and CEO Wayne Marc Godfrey in a press release. “Streaming is not just replacing traditional sources of entertainment revenue such as pay TV and linear broadcasting. It actually expands the global video market.
The average cost of an American television series fell from $ 59.6 million in 2020. Several high profile shows on Disney +, Apple + and Prime Video are more expensive. Wandavision, The Falcon and The Winter Soldier, The Lord of the Rings and Airbenders each cost over $ 20 million per episode. The Mandalorian came to $ 16.3 million.
There are many reasons for these increases, Purely says. First, the costs of talent are on the rise, especially when it comes to locking them down for future seasons of a show. Production costs also rise as content creators attempt to create content that stands out from the competition and attracts subscribers to platforms.
COVID protocols added 20% to 30% to production budgets in 2020, Purely says. Hollywood is still recovering from the impact of the world’s worst health crisis in more than a centuryy. The Los Angeles Times recently noted that nearly 300,000 California jobs have been lost in California’s creative industries due to the pandemic.
“Although productions were allowed to resume last summer – a controversial move in light of the ban on outdoor dining and other activities – filmmakers have faced mounting costs and loss. insurance coverage, âthe newspaper said.
Independent content producers operating outside the studio system are also stepping up. Plain and simple estimates that spending on independent content jumped more than 25% in 2020 to reach $ 144.3 billion. It now represents nearly 66% of global film and television production activity.
“Our research also shows that now is the time for independent producers to present their best and best ideas to streamers, whether they are scripted or not,” Godfrey said. âStreamers are also co-producing and acquiring more out-of-the-box content than ever before – so it’s not just about producing an ‘Original’ for them anymore.“