Netflix has sparked what BloombergBusiness calls an “arms race in cable,” with its projected spending of close to $5 billion on non-sports programming in 2016.
“Media companies have settled on a strategy to combat declining viewership at their TV networks: spend, spend, spend,” the story reports, noting that Discovery Communications, Viacom and Starz have all recently indicated they’re planning to increase spending on programming.
Projected programming expenditures this year, excluding sports, find Netflix leading the way with $4.97 billion, the story reports, with Time Warner — including HBO and Turner Networks — second on the list at $4.56 billion. Rounding out the top five, according to Bloomberg, are Fox ($3.83 billion), Viacom ($3.82 billion) and Disney ($2.88 billion).
The report quotes Doug Creutz, an analyst with Cowen & Co., saying: “All these companies have been raising the amount they’re spending on programming pretty consistently. TV is losing audiences, and you’re trying to have new stuff to keep audiences engaged with your programming.”