Content spending for major SVOD services will rise to $6.8B in 2015, analyst says

The top three SVOD services, Netflix (NASDAQ: NFLX), Hulu and Amazon Prime (NASDAQ: AMZN), will collectively spend $6.8 billion to acquire already produced, non-original, "off-network" programming next year. That is 31 percent more than the $5.2 million they'll spend in 2014.

According to analyst David Bank of RBC Capital Markets, the major online video platforms have a ways to grow before they surpass cable as the leading acquirer of studio-quality off-network programming--cable is expected to spend $18.4 billion on syndicated video content in 2015.

The major SVOD services, however, will spend more than double the $3.3 billion that broadcast stations shell out  on syndicated programming in 2015.

Among individual suppliers, RBC said CBS Studios will collect an industry-leading $179 million from selling six of its series to SVOD distributors in 2015. Warner Bros. TV ($106 million), Lionsgate ($61 million), Sony Pictures TV ($43 million), Fox ($40 million, ABC Studios ($40 million) and NBC Universal ($22 million) round out the list of top off-net sellers to the SVOD market.

"While much has been made of the potential for original programming to lower demand for acquired off-network programming, we think such concerns are overstated," Bank writes. "The average linear cable channel or SVOD platform alike has to program 24 hours per day of viewer demand. This demand cannot be satisfied by a slate of six or so original shows."

For more:
- read this Hollywood Reporter story
- read this Variety story

Related links:
Fast-growing SVOD won't displace pay-TV but will cut into premium services, Gartner predicts
Hastings addresses HBO competition: 'It's just one more channel'
Netflix stumbles on subscriber growth, keeps revenue in line at $1.41B

Sponsored by Dell Technologies

Whitepaper: How to Elevate Your Content Delivery Workflows With Dell EMC PowerScale

Learn how Dell EMC PowerScale helps meet surging viewer demand while reducing costs with a single centralized platform for the ingest, processing, and delivery of the content your viewers love.

Suggested Articles

WarnerMedia scored a key HBO Max distribution deal with Comcast just as it launched in May. Nearly six months later, there still isn’t an app.

Comcast is planning new data caps and video service price increases for its subscribers in 2021.

The Apple TV remote is an often reviled peripheral device. Universal Electronics has taken it upon itself to create a different option.