Report: SVODs To Boost Original Content Annual Spend To $10 Billion By ‘22

TDG analysis notes importance of original content to retaining subscribers January 30, 2018

PLANO, TEXAS—Netflix, Hulu and Amazon Prime will spend $10 billion annually on original content by 2022 –a threefold increase from what they spend today, according to a new report from The Diffusion Group (TDG).

The report, “Big-3 SVOD and the Original Content Arms Race – Analysis & Forecasts,” finds original content is an important factor in retaining subscribers. Twenty-one percent of Netflix subscribers say original content is “absolutely critical” to their choice to continue subscribing, and 41 percent say originals are a “very important” factor, it says.

"The data is unequivocal," says Brad Schlachter, TDG senior advisor and author of the new report, "though it varies among the Big-3 SVOD providers."

While not every original series is a blockbuster, those that are a hit, such as Hulu’s Handmaid’s Tale or Netflix’ House of Cards, “can change the fortunes of a company,” he adds.

The report points out that other companies, such as Apple and Facebook, are looking to repeat this type of success with their own original content, and Disney, which has pulled its most compelling content from the libraries of Hulu, Netflix and Amazon Prime, promises to be a strong competitor in the SVOD space.

To find out more about the report, visit the TDG website.

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