By Michaela Gordoni
The 12 largest media companies set a record for content spending in 2024 with a total of $210 billion.
Comcast/NBCUniversal spent the most at $37 billion. YouTube spent $32 billion, Disney spent $28 billion, Amazon spent $20 billion and Netflix spent $17, Variety reported on Sept. 23.
KPMG reports content spending has risen by 10% from 2020 to 2024. It sat at $142 billion in 2020. Comcast has been the biggest spender for the last five years, according to KPMG’s report.
“While some argue that ‘peak content’ has been reached, we believe the industry is far from saturation — although the reality is more nuanced,” the research firm said. “Content spend is not growing uniformly across formats and genres.”
Production Lot said YouTube’s spend represents revenue shared with its millions of content creators, its music licensing and NFL Sunday Ticket, not shows. So it’s playing a different ballgame than the other companies.
Related: Amazon Spent Nearly $19 Billion on Content Last Year
“It’s not just about ‘more content’ now. We’re seeing more deliberate investment,” said Scott Purdy, media strategy leader for KPMG U.S. “Leaders are using their learnings from the past few years and the increasing power of data-driven insights to prioritize their bets, shape creative decisions, and drive better returns.”
User-generated content (UGC) and ad-supported models are estimated to drive content.
UGC “will likely see continued expansion, fueled by increased ad dollars and a robust creator economy,” the report said.
It assessed that AI will enhance the production process, rather than “take it over.”
“AI is rewriting the content playbook — creation, personalization, distribution, monetization,” said Frank Albarella, KPMG’s U.S. sector leader, media and telecommunications. “Media leaders thoughtfully and strategically experimenting with AI today are building tomorrow’s competitive advantage.”
Comcast, the biggest spender on content, recently named a new co-CEO, Michael Cavanagh, alongside Brian Roberts, effective in January.
“Since joining Comcast a decade ago, Mike has proven himself to be a trusted and collaborative leader,” said Roberts, in a statement. “He is the ideal person to help lead Comcast as we manage the pivot we are making to drive growth across the company. Mike and I work seamlessly together, and I am thrilled to be partnering with him as co-CEO and with the rest of our talented management team, for years to come.”
Comcast is shedding cable assets from NBCUniversal into a new entity, Versant, in hopes that its broadcast and streaming departments will advance, Variety reported Monday.
“Comcast is a special company with exceptional businesses and an incredible team,” Cavanagh said. “It is an honor to work with Brian and the entire Comcast NBCUniversal leadership team during this exciting and transformative time in our industry.”
Read Next: Why Did Comcast Spin Off Its Cable Channels?
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