November 2, 2023
The global TV and streaming video market is expected to be worth USD 700 billion by 2023, of which USD 164 billion will be invested in programming. The data was presented at one of the biggest TV conferences at Mipcom by Tim Westcott, Omdia's research analyst for digital content and channels. This amount is based not only on advertising revenues and subscriptions, but also on revenues from the public sector.
The value of the TV and streaming market grew from an estimated $394 billion in 2010 to $406 billion, an increase of 77%. The current data comes from the outcome of research on the global software market prepared by Omdia. The study was built from the ground up, estimating how much broadcasters, channels and streaming platforms spend in 119 countries. The start-up and content production costs of not only broadcasters and streaming service owners, but also producers and distributors were carefully analyzed. Online subscriptions will account for 47% of the total, up from 45% in 2010. Advertising, on the other hand, will account for 48%, an increase of 3% on 2010, with its share of the value of public revenues falling from 10% in 2010 to 5% of the value of the industry surveyed.
The America represent up to 43% of market value, Asia and Oceania 25% and Western Europe 18%. According to the Omdia study, programme investment in the US is stable, with a decline of only 1% from 2022. Over the past 5 - 10 years, it has been the streaming platforms, led by Netflix, that have been the main drivers of the value growth of the industry. Next year, unfortunately, streaming subscriber growth is going to stop and stagnate.
It is the production studios that compete very strongly with the streaming platforms in terms of investment in content. Many companies are under immense pressure to improve profits and reduce software spending: Warner Bros. Discovery or Disney. Revenues from online advertising increase significantly, but not from traditional linear TV advertising. Other data presented by Westcott during the presentation included a challenge to the number of scripted and unscripted orders on US networks. In the 2023/2024 season, the number of series broadcast has fallen significantly, with only 43 titles in the current season, compared with 179 in 2019, for example. This was, of course, influenced by this year's strikes by US writers and actors, which halted the production of new titles and subsequent seasons, forcing broadcasters and streaming platforms to significantly reduce their offerings and reschedule broadcasts.
Westcott also highlighted a trend reversal in 2022. At that time, the linear TV audience share was only 45% in the US, 48% in the UK, 80% in Italy and 73% in Spain. According to the research carried out by Omdia, the largest groups are still more likely to invest in linear TV than they are in streaming platforms.
The Americans continue to reign supreme at the top of the list of biggest TV producers. Of course, US production studios are among the top five groups in terms of revenues from producing and distributing TV.
NBC Universal was ranked number one, with revenues of $8.71 billion in 2021/2022, representing an increase of 15% and ahead of Disney, which saw its revenues fall by as much as 27%. In Europe, it was the French multinational TV production and distribution company Banijay that made it into the top ten. It is recalled that France has become the largest world market in terms of manufacturing affiliations, overtaking the UK. It appears that new sources of funding have been found to invest in programming.
Omdia's research has confirmed that there is still a huge amount of money being spent on TV production commissions. Producers have also stopped waiting for broadcasters to confirm an order and are moving into production themselves, often making up the difference themselves or financing it with distributors. This is more like the feature film production model.
For productions for linear television, the co-production trend is also growing in popularity. The first to be affected were children's programmes, where there was a move away from full commissioning. Even previously fully funded scenarios are affected. The situation is different in the US, where the film production model for television production has long been in place, i.e. the producers have to raise the money for the programme or series in order for it to be produced.
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