Content Creation Drives Market For Audio And Video Products

Jun 28, 2018

Portable audio and video products are more sought after now than ever before due to the abundance of new content creation by companies such as Netflix, Amazon, Hulu, and Facebook. While Netflix and Hulu were originally designed as streaming services, and Facebook as a social media platform, they are all now competing for their share of original content.

Industry data shows that Netflix, Amazon, and Hulu spent $6B, $4.5B and $2.5B respectively on proprietary content in 2017. According to data collected by research company MoffettNathanson, that combined $13B total spend was more than the non-sports budgets of Viacom, CBS, Discovery, and AMC combined. In 2018, Netflix has announced plans to spend upwards of $8B, while JPMorgan analyst Doug Anmuth projects a $5B spend for Amazon. Even social media giant Facebook is looking to grab a piece of the pie as Mark Zuckerberg announced the company’s intentions to spend at least $1B in 2018 for its original Facebook Watch program content. Although Hulu has yet to confirm how much of their self-reported $20B-$30B total budget will be allocated to original content, it is expected to be an increase over 2017 as they work to keep pace with their rivals. With the addition of Facebook Watch, even if Hulu kept their budget stable in 2018, the projected spend for all four would be a 27% increase over 2017.

Wordstream, a digital media marketing provider, released a staggering statistic stating that the number of videos uploaded to the web in just one month now equals the amount of content it took major U.S. TV networks over 30 years to produce. As new content development becomes paramount for program providers, they’ll look for new creators to expand their content offerings, causing demand for handheld recorders and portable interfaces to increase. For many, yesterday’s semi-professional has the potential to become tomorrow’s groundswell of new professionals.