Streaming 'Profit‑First' Shift
Analysts are saying the global streaming 'content arms race' is ending and platforms are prioritizing profitability and scale over sheer volume commissioning. The argument is that buyers will lean toward projects that fit clearer monetisation paths and tighter budgets rather than indiscriminate output (broadbandtvnews.com).
Streaming companies are buying fewer shows for sheer scale and more projects that can make money fast, analysts said Wednesday in Lisbon. (broadbandtvnews.com) At Stream TV Europe on April 15, analyst Ben Keen said the industry’s early spending surge has given way to a “new streaming reality” after years of losses at legacy media groups. He said 2022 was the high-water mark, with $108 billion spent on non-sports programming before commissioning pulled back. (broadbandtvnews.com) Keen said global investment in English-language television fell 8% last year, streamer commissions for high-end television drama in Europe are down 8% since 2022, and broadcaster-studio co-commissions have dropped 42% from the 2022 peak. (broadbandtvnews.com) The shift is showing up in company results. Disney said its direct-to-consumer business posted $352 million in operating income in the quarter ended September 27, 2025, with 196 million Disney+ and Hulu subscriptions at quarter end. (thewaltdisneycompany.com) Warner Bros. Discovery said on February 26, 2026 that it ended 2025 with 131.6 million streaming subscribers after adding 3.5 million in the fourth quarter, while total company revenue fell 5% on an ex-foreign-exchange basis for the year. (wbd.com) The bigger market has not stopped growing, but the growth is slower and more selective. Ampere Analysis said global content investment is forecast to reach $255 billion in 2026, up 2% year over year, with streamers expected to spend $101 billion, or 40% of the market. (ampereanalysis.com) That means the fight has moved from “who can order the most” to “who can spread costs across the most subscribers, ads, and territories.” Ampere said streamers passed commercial broadcasters in 2025 for total content spend, while traditional broadcasters faced stagnant or declining investment. (ampereanalysis.com) Europe shows how uneven that new math has become. Keen said streamers account for about 16% of high-end drama production there, but Netflix is now the second-largest commissioner in Europe behind the British Broadcasting Corporation, and about half of streamer-commissioned European content comes from Spain, and the United Kingdom. (broadbandtvnews.com) Budgets are part of the squeeze. Keen said United States studios and streamers have outspent local broadcasters by an average of £7 million per hour over the past five years, and some streamer-backed series have topped £10 million per hour. (broadbandtvnews.com) Netflix remains the clearest counterexample to the retrenchment story because it is still commissioning across all major European production markets, Keen said. The difference now is that the market is rewarding platforms that can turn that spending into profit, not just headlines. (broadbandtvnews.com)
