Netflix and Amazon Drive Small Bump in TV Market After Significant Slowdown

Strategic Insights -

The entertainment industry's momentum still hasn't taken hold nearly seven months after Hollywood resolved its strikes. A slogan among entertainment workers is "Survive till '25," but the global market for ordering new TV shows is slowly showing signs of life, largely driven by Netflix and Amazon. According to Ampere Analysis, Netflix greenlit more scripted television projects in the first quarter of this year than in any quarter since 2022, while Amazon had its most active quarter since the firm started tracking market activity five years ago.

Key Takeaways:

  • Netflix greenlit more scripted television projects in the first quarter of this year than in any quarter since 2022, according to Ampere Analysis.
  • Amazon had its most active quarter since Ampere started tracking market activity five years ago, the firm said.
  • Netflix and Amazon collectively accounted for 53 percent of the scripted television series orders among the major studios through the first three months of the year.
  • Most of the series orders have been made internationally, with Netflix being particularly active in Britain, Germany, Spain, and South Korea.
  • Amazon has been investing aggressively in India and has purchased more projects in the United States compared with the tail end of 2023, but increases have been more modest.
  • Netflix and Amazon are in a stronger financial position than their competitors, with Netflix earning more than $5 billion in profit last year and Amazon surpassing Wall Street's expectations with its first-quarter earnings.
  • The major media companies have been slashing costs to try to make their streaming services profitable, with some ordering more domestic projects compared with the second half of last year.

Statistics:

  • 53 percent: The share of scripted television series orders among the major studios that Netflix and Amazon collectively accounted for through the first three months of the year.
  • 5 years: The amount of time that Ampere has been tracking Netflix and Amazon's market activity.
  • $5 billion: The amount that Netflix earned in profit last year.
  • 34 percent: The decline in submissions for the Emmy Awards in the drama category from last year to this year.
  • 23 percent: The decline in submissions for the Emmy Awards in the comedy category from last year to this year.
  • 2022: The year in which the number of scripted shows premiered in the United States peaked at about 600.
  • 2026: The year in which some industry officials are predicting that the number of TV shows will need to be sustained.
  • 40 percent: The expected decline in the number of TV shows submitted for Emmy nominations compared to 2022.

Sources:

  • Ampere Analysis
  • The New York Times
  • Philip Cheung (photographer)