A new report finds that Netflix and Amazon are outspending several big traditional networks when it comes to TV programming.
According to the World TV Production Report 2016 from IHS Markit, the two internet streaming firms spent a total of US$7.5-billion last year. Amazon spent US$2.67-billion last year, compared to Netflix and its impressive US$4.91-billion figure for 2015.
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Both streaming services outspent HBO (US$2-billion), while Netflix also shelled out more cash for TV programming than Turner Broadcasting (US$3.8-billion).
Next in Netflix’s sights is CBS, having spent US$5.7-billion last year, according to IHS Markit.
However, the streaming service still trails Disney and NBC Universal, being pegged at US$11.8-billion and US$10.2-billion respectively.
The report noted that Hulu and China’s Youku, Tencent and iQifyi have seen investment increases in this department as well.
Despite Amazon and Netflix spending more than HBO, linear TV is tipped to stay for a while yet
“In what Netflix calls the era of internet TV, more and more consumers are watching content online, shaking the foundations of the traditional TV industry,” IHS Technology senior principal analyst Tim Westcott said in a statement.
“However, it’s premature to declare that the era of linear TV is already over, and Netflix and Amazon have come hard on the heels of a boom in production of original drama and comedy by the likes of AMC and FX in the US.”
The report noted that 148 new scripted shows aired on basic cable in 2015, compared to 96 in 2013.
