The global TV and streaming industry is undergoing a major transformation, as highlighted by Ampere Analysis in their recent presentation at Content Americas. This shift is characterized by a move away from the traditional U.S.-centric production model towards a more diversified and globally-focused approach. In this article, we will explore the key drivers behind this change and the implications it holds for the future of content.
Decline in U.S. Commissioning and Production
One noticeable trend is the decline in U.S. commissioning and production activity. This downturn has been ongoing since the latter half of 2022, even before notable disruptions like the strikes took place. When comparing the number of scripted shows produced in 2023 to the average of the previous two years, there has been a significant 38% decline. Streaming services, in particular, have pulled back from their previous aggressive content investment strategies as investors demand profitability. This results in fewer shows being produced over the next 18 months.
Strikes and Economic Pressures Reshape Priorities
The impact of the Hollywood strikes has worsened the declining trend in content production. First-run TV experienced a 46% decline, while renewals were down by 29% year-on-year. This has pushed the industry towards a more cautious approach to commissioning new projects and renewing existing ones. For example, shows like “Shadow and Bone” and “Glamorous” did not see a renewal in 2023, despite their previous success. Viewing numbers are now taking precedence over completion rates.
Streamers Tighten Belts and Look Abroad
To diversify their content offerings, streaming giants like Netflix and Amazon are increasingly turning to international markets. They now generate over half of their content from outside the U.S., signaling a shift away from American production ecosystems. This global pivot goes beyond geography and suggests a broader exploration of narrative scopes and audience engagement strategies. Although there is a decrease in the rate of investment growth, Ampere Analysis forecasts a 30% increase in global investment change from 2023 to 2028. Central and South America, along with Asia and MENA & SSA, are expected to see increased investment, while Europe and the U.S. may experience a leveling off or slight decline.
The Latin American Conundrum
Latin America, particularly Mexico and Brazil, remains a key region for investment with continued growth expected. Despite a 30% decline in series orders in 2023 compared to 2022, the region shows relative resilience due to its lesser impact from U.S. strikes and the presence of subsidy systems for local productions. Argentina, Mexico, and Brazil remain in the top 10 international markets in terms of series orders. Additionally, streamers are recalibrating their investments and turning towards emerging markets like Nigeria, South Africa, and Saudi Arabia.
The Road Ahead: Diversification and Investment Shifts
The industry finds itself at a crossroads, with investment in North American content plateauing. On the other hand, regions like Asia, the Middle East, and Sub-Saharan Africa are poised for significant growth. This convergence of Hollywood strikes, streamlining of streaming costs, and a strategic realignment towards new regional priorities indicates a future of global diversification in content production. In Latin America, genres such as children’s programming, reality TV, and romance are becoming the focus of this strategy. Notably, there has been a 35% increase in children and family commissions and a whopping 148% increase in reality shows, while comedy and sci-fi/fantasy have experienced declines.
As the global TV landscape continues to evolve, it’s clear that the traditional dominance of U.S.-centric production is giving way to a more international and diverse approach. With a shift in investment priorities and a growing focus on emerging markets, the future promises exciting new narratives and increased audience engagement. To stay up-to-date with these trends, visit F5mag.com.
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