Industry News

Analysts predict streaming spend and new content slowdown in 2023

21 March, 2023

The number of new, original scripted series may start to shrink this year or next after hitting a record high in 2022, analysts warn. The amount spent on new content will also slow or contract for most of the traditional entertainment companies. Under pressure to produce profits, media companies are beginning to pivot their strategies from producing a glut of original content for their own platforms to more cautious spending and licensing out more content to competitors. "The number of shows is down this year, and there is no reason to expect it to climb back to prior levels," said Michael Pachter, managing director of equity research at Wedbush Securities. "Everyone suddenly recognized that profitability matters, and they are cutting costs wherever they can. I expect more overseas production, but far less domestically." A new report out Tuesday from leading media analysis firm MoffettNathanson predicts a "flattening in 2023" after two years of strong double-digit content spending growth.

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