Top US Media Groups Including Disney, Netflix Look To Spend $115B In 2022: FT

The top eight U.S. media groups expect to spend at least $115 billion on new movies and TV shows in 2022 to attract new customers for the video streaming business, Financial Times reports.

• Morgan Stanley sees The Walt Disney Co’s DIS investment in streaming content growing by 35%-40% in 2022. 
• Disney’s spending on all new movies and TV shows will likely reach $23 billion, though the number rises to $33 billion, including sports rights, up 32% from its total content spending in 2021 and 65% from 2020. 
• Netflix Inc NFLX looks to spend over $17 billion on content in 2022, up 25% from 2021 and 57% from 2020. Netflix aims to break even and become free cash flow positive in 2022. 
• “There is no turning back,” said media analyst Michael Nathanson of MoffettNathanson. “The only way to compete is spending more and more money on premium content.” 
• In the past few quarters, subscription growth has slowed for Netflix, Disney’s Disney Plus streaming service, and others. 
• Costs have been rising as the biggest entertainment and technology companies rush to produce more shows to feed their streaming services. 
• Finding locations to film in Los Angeles has become difficult. 
• Price Action: DIS shares traded higher by 0.36% at $155.76 in the premarket session on the last check Wednesday.