The top eight U.S. media groups plan to spend at least $ 115 billion on new movies and TV shows over the next year to run a video streaming business that is losing money to most of them.
The huge investment in new content is due to concerns that after pandemic growth in 2020 and 2021, it will be more difficult to attract customers in 2022.
An entertainment manager described the planned expenses, which the Financial Times calculated on the basis of company information and analyst reports, as “insane”. Including sports rights, the total spending estimate rises to about $ 140 billion.
“There’s no going back,” said MoffettNathanson’s media analyst Michael Nathanson. “The only way to compete is to spend more and more money on premium content.”
Disney programs slated for 2022 include a retelling of Pinocchio with Tom Hanks, a new part of the cars Franchise and Obi Wan Kenobi with Ewan McGregor. Netflix, ViacomCBS, Fox and Apple also want to spend billions of dollars on content.
Three more stories on the news
1. Former Senate Majority Leader Harry Reid has died The longtime Democratic lawmaker who was a driving force behind many of the legislative achievements of former US President Barack Obama died yesterday. James “Jimmy” Cayne, the head of the New York investment bank Bear Stearns in the run-up to its collapse in the 2008 financial crisis, has also died.
2. Hedge funds bet against market pessimism The steepener trade – a bet that long-term US Treasury bond yields will rise faster than short-term bond yields – proved painful for macro funds this year as central banks kept inflation under control. However, the data shows that this trade is attracting funds again.
3. HK Police raid pro-democracy news agency More than 200 officers from the Hong Kong National Security Police came to the offices of Stand News, an independent news site known for its critical reporting of government policies. Current and former executives have been arrested for alleged “conspiracy to publish inflammatory publications”, according to police.
The United States Centers for Disease Control and Prevention cut its estimate of how much of the country’s Covid-19 wave was caused by the omicron coronavirus variant from three quarters of a week ago to just over half.
Germany The Supreme Court has called for more protection for disabled people if doctors only treat Covid patients with a greater chance of survival.
A sharp spike in NHS staff absenteeism due to coronavirus risks delaying patient care is leading health officials in England have warned that hospital admissions in the country reached a nine-month high.
What else we read
Bull market starts the new year on shaky foundations What needs to happen for you to believe you could achieve double-digit stock market returns in 2022 – the fourth straight year, Merryn Somerset asks Webb. It explains the most important things to consider.
Graphic of the year – sense for 2021 From Covid charts to technological explanations to chronicles of human tragedies, we live in an era that is increasingly being captured by visual reporting. Graphics have a language as rich and expressive as the written word. Here are some of this year’s highlights, including a map showing the carbon released by raging fires in the remote Siberian Republic of Sakha, selected by the FT’s data team.
Trump’s vaccine heresy shows that populism is not a monolith The friendship fire against Trump over comments on Covid vaccines reveals his vulnerability. The problem is that it also shows how much populism has hardened. If we have learned something in 2021, writes Janan Ganesh, then populism is much more than a personality cult today.
Our most read Markets article of the year
We have to go almost a year back in time to find the most widely read Markets story of 2021: Philip Stafford’s post on EU equity trading escaping from London on the first day after Brexit. Almost € 6 billion of trading was diverted to newly created European hubs and primary exchanges.
If you are interested in the UK’s future in Europe after Brexit, Register for Peter Foster’s Britain after Brexit newsletter, which will keep you up to date with everything you need to know.
Thank you for reading and remember that you can add FirstFT to myFT. You can also choose to receive a FirstFT push notification in the app every morning. Send your recommendations and feedback to firstname.lastname@example.org
Recommended newsletters for you
UK after Brexit – Stay up to date with the latest developments as the UK economy adapts to life outside the EU. Sign up here
Next week– Start each week with a preview of the agenda. Sign up here