Following the mergers of Comcast/Sky and Disney/Fox, two in every 10 dollars spent on content worldwide will be spent on these two entities, according to Ampere Analysis.
The two merged players will spend a combined $43 billion on content by the end of 2018. This exceeds the outlay of the next 10 largest content spenders, including the likes of Netflix and Amazon.
Each of the two entities controls a vast library of original content says Ampere. Disney has indicated it will stop licensing content to Netflix in favour of its own direct-to-consumer offer, whose appeal is strengthened with the addition of Fox assets.
Daniel Gadher, analyst at Ampere Analysis, said: “Prior to the recent mergers, Netflix was on course to catch – and overtake – the top Hollywood studios by content spend. However, in light of the two new combined entities, Netflix would now need to triple spend to achieve this this feat.
“One implication of this consolidation is the effect on independent producers. With a shrinking number of content acquirers in the market, the competition for rights will diminish, and this will inevitably impact the indie sector’s ability to negotiate favourable deals,” he added.
TVBEurope recently reported that the Disney/Fox deal could close in Spring 2019.
Comcast won the Sky takeover bid in September 2018.
