Omdia forecasts programming spend to rebound to $206bn by 2025 following challenging 2024

Rhea-AI Summary

Programming spend is projected to grow 5.3% to reach $206 billion globally in 2025, following a challenging 2024, with North America leading at 6.7% growth. The research highlights the rising significance of Free Ad-Supported Streaming TV (FAST) platforms, with major players like Samsung TV Plus (200M monthly users), Roku (140M), and Pluto TV (80M) expanding globally.

These platforms are evolving from library content to original productions, creating new opportunities for content creators. Hardware companies like Samsung and LG are driving innovation through exclusive FAST channels and collaborations. The trend includes strategic partnerships, such as Amazon's collaboration with Samsung TV Plus for The Rings of Power, demonstrating the growing importance of original content in driving subscriptions.

Positive

• Global programming spend projected to grow 5.3% to $206 billion in 2025
• North American market expected to grow 6.7% in 2025
• FAST platforms showing strong user growth (Samsung TV Plus: 200M, Roku: 140M, Pluto TV: 80M users)
• New revenue opportunities emerging through FAST platform original content initiatives

Negative

• Challenging market conditions expected in 2024
• FAST platforms may not fully fund content projects, requiring additional financing sources

Insights

Market Research Analyst

The forecasted $206 billion global programming spend by 2025, with a 5.3% growth rate, signals a significant market recovery. This rebound, particularly strong in North America at 6.7%, reflects evolving dynamics in content distribution and monetization strategies.

The FAST platform ecosystem shows remarkable scale, with Samsung TV Plus's 200 million monthly active users leading the pack. This shift from traditional content distribution to FAST platforms represents a structural change in media consumption patterns. The movement of these platforms into original content production indicates a maturing market and potential pressure on traditional content pricing models.

For TechTarget (TTGT), this industry transformation presents both opportunities and challenges. While the growing demand for content could benefit their B2B media operations, the shift toward FAST platforms might impact traditional digital advertising models. The trend toward original content production could create new competitive pressures in the B2B content space.

LONDON, Dec. 4, 2024 /PRNewswire/ -- Programming spend is forecasted to recover in 2025 by 5.3% growth, reaching $206 billion globally following a challenging 2024, according to Omdia. North America is expected to lead this resurgence with a 6.7% increase, reflecting a renewed focus on investment and profitability in the industry.

At Content London, Maria Rua Aguete, Head of Media and Entertainment at Omdia, revealed key trends shaping the recovery of the global media and entertainment market. The research emphasized the growing impact of Free Ad-Supported Streaming TV (FAST) platforms and consumer electronics giants like Samsung, LG, and Roku that have focused on creating fresh opportunities for content producers. "With platforms such as Tubi, Pluto TV, and Samsung TV Plus expanding globally, their pursuit of original content marks a critical moment for content creators to collaborate with these emerging players," explained Rua Aguete.

FAST platforms are quickly multiplying, with Samsung TV Plus surpassing 200 million monthly active users, Roku reaching 140 million, and Pluto TV at 80 million. These services are evolving beyond repurposed library content for themed linear channels, and now venturing into original and exclusive productions, creating significant opportunities for content creators.

During her presentation, Maria emphasized how hardware companies like Samsung and LG are also driving innovation by launching exclusive FAST channels and forging new collaborations in the competitive media ecosystem.

"These changes signal a pivotal moment," Rua Aguete said. "For content producers, partnering with hardware companies and FAST platforms unlocks a growing market for original productions. While these platforms may not fully fund projects, co-productions with established studios and multi-channel distribution strategies can help minimize risks and maximize exposure."

Omdia's latest consumer research highlights that original and exclusive content remains a key factor driving subscriptions to video services, a trend that also applies to free platforms. Recently, Amazon partnered with Samsung TV Plus to debut The Rings of Power ahead of its second season on Prime Video, while LG launched exclusive FAST channels in the US and Europe, showcasing their dedication to unique content offerings.

During its Content London presentation, Omdia underlined the growing opportunities for content creators as hardware companies and FAST platforms transform traditional distribution models.

"By leveraging these partnerships, producers can access new revenue streams and audiences, paving the way for sustained growth in an ever-evolving industry," concluded Rua Aguete.

ABOUT OMDIA
Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.

Contact
Fasiha Khan: fasiha.khan@omdia.com

 

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SOURCE Omdia

FAQ

What is the projected global programming spend for 2025?

Global programming spend is projected to reach $206 billion in 2025, representing a 5.3% growth.

How many monthly active users does Samsung TV Plus have?

Samsung TV Plus has surpassed 200 million monthly active users.

What is the expected growth rate for North American programming spend in 2025?

North American programming spend is expected to grow by 6.7% in 2025.

How are FAST platforms evolving their content strategy?

FAST platforms are moving beyond repurposed library content to invest in original and exclusive productions, creating new opportunities for content creators.