Global spending on entertainment content production and licensing increased more than 16 percent to $ 220 billion in 2020 despite the industry shutdown due to the COVID-19 pandemic, according to research published by the fintech platform. . Purely Capital. Next year, film and television producers are expected to shell out $ 250 billion.
The Walt Disney Company was the largest spender with a total of $ 28.6 billion for 2020 in North America. Warner Media and Discovery, which combined in a multi-million 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 the MGM television and film studio for $ 8.45 billion. Combined spending by companies in 2020 was $ 11.8 billion. Total spending by the four companies amounted to $ 76.3 billion, close to 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 yet to reach any natural ceiling, ”he said. Purely Capital founder and CEO Wayne Marc Godfrey in a press release. “Streaming is not just displacing traditional sources of entertainment income such as pay TV and linear streaming. It is actually expanding the global video market.
The average cost of an American television series increased from $ 59.6 million in two020. 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 Masters of the Air each it costs more than $ 20 million per episode. The mandalorian reached $ 16.3 million.
According to Purely, the reasons behind the increases are many. First, talent costs are increasing, especially when it comes to locking them in for future seasons of a show. Production costs are also increasing as content creators try to create content that stands out from the competition and drives subscribers to platforms.
COVID protocols added 20 to 30 percent to production budgets in 2020, Purely says. Hollywood is still reeling from the impact of the worst global health crisis in more than a century.Y. Los Angeles Times He recently noted that nearly 300,000 California jobs were lost in creative industries in California due to the pandemic.
“Although productions were allowed to resume last summer, a controversial decision in light of the ban on outdoor dining and other activities, the filmmakers faced mounting costs and lost insurance coverage,” the newspaper said.
Independent content producers operating outside the studio system are also stepping up. It purely estimates that independent content spending increased more than 25 percent year-over-year in 2020 to $ 144.3 billion. It now accounts for nearly 66 percent of the world’s television and film production activity.
“Our research also shows that the time has come for independent producers to bring their biggest and best ideas to streamers, whether scripted or unscripted,” said Godfrey. “Streamers are also co-producing and acquiring more ready-to-use content than ever before, so it’s no longer just about producing an ‘Original’ for them.“