$126 billion. That’s the number for how much streaming services like Paramount’s (PARA) Paramount+ will be shelling out for content over the course of this year. A new study out from Ampere Analysis declares that not only will a range of media companies be paying a lot overall for their content, but about a third of that will be spent on streaming.
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The Ampere study took a look at several media companies—Disney (DIS), Paramount, Warner Bros. Discovery (WBD), Netflix (NFLX), Alphabet (GOOGL), and Comcast (CMCSA)—and found that they were looking to spend that $126 billion. That is a record, according to the report, and these six firms will represent roughly half, 51%, of total content spending for 2024. The previous record stood at 47% back during the pandemic.
Ampere research manager Peter Ingram noted that this is the result of several separate factors, starting with a recovery from the pandemic, which really only recently began. Further, there is the fact that actors, writers, and producers strikes will be out of the picture. Ingram also noted that growth will “plateau” for a while as media companies look to “refocus their output.”
A New Global Head of Inclusion
Backlash against diversity, equity, and inclusion (DEI) measures has been cropping up at different companies for some time now, and that may be the case at Paramount, too. In fact, starting January 1, Paramount’s global head of inclusion, Marva Smalls, will be transitioning into a new role where she reports to the Office of the CEO, the company’s board of directors, and Skydance itself.
What her new role will be, however, is uncertain, and apparently, Smalls will also no longer be the head of inclusion for Paramount. When 2025 dawns, meanwhile, then we will likely see just what Smalls’ new role really is at Paramount.
Which Media Stock Is a Good Buy Right Now?
Meanwhile, among the five stocks discussed today, WBD stock is something of the biggest leader. This Moderate Buy-rated stock offers a 41.72% upside potential against an average price target of $10.70 per share. On the other hand, NFLX stock is the laggard, as this Moderate Buy-rated stock with an average price target of $786.34 per share can only offer a 3.49% upside potential.
