Top US Media Groups Including Disney, Netflix Look to Spend $115 Billion in 2022: FT

By Benzinga
December 31, 2021 Updated: December 31, 2021

The top eight U.S. media groups expect to spend at least $115 billion on new movies and TV shows in 2022 to attract new customers for the video streaming business, Financial Times reports.

Morgan Stanley sees The Walt Disney Co.’s investment in streaming content growing by 35 percent–40 percent in 2022.

Disney’s spending on all new movies and TV shows will likely reach $23 billion, though the number rises to $33 billion, including sports rights, up 32 percent from its total content spending in 2021 and 65 percent from 2020.

Netflix Inc. looks to spend over $17 billion on content in 2022, up 25 percent from 2021 and 57 percent from 2020. Netflix aims to break even and become free cash flow positive in 2022.

“There is no turning back,” said media analyst Michael Nathanson of MoffettNathanson. “The only way to compete is spending more and more money on premium content.”

In the past few quarters, subscription growth has slowed for Netflix, Disney’s Disney Plus streaming service, and others.

Costs have been rising as the biggest entertainment and technology companies rush to produce more shows to feed their streaming services.

Finding locations to film in Los Angeles has become difficult.

By Anusuya Lahiri

© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.