SVOD Cos. To Spend Nearly $7B In 2015

Big TV producers/networks will see revenue from subscription video-on-demand services rise by 31% next year.

A report from David Bank, media analyst for RBC Capital Markets, says SVOD companies --- Netflix, Hulu, and Amazon Prime will spend $6.8 billion in 2015, up from $5.2 billion this year.

Total broadcast station, cable and SVOD program sales are estimated to bring in about $29.5 billion in 2015.

Cable networks will still be the biggest player for TV producers/networks, spending $18.4 billion for syndicated content next year. Broadcast TV stations will spend $3.3 billion.

CBS will pull in a leading $179 million from selling programming to SVOD distributors in 2015; Warner Bros. TV, $106 million; Lionsgate, $61 million; Sony Pictures TV, $43 million; Fox, $40 million; Disney-ABC, $40 million; and NBC Universal, $22 million.

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Netflix will pull in the biggest revenue -- $3.3 billion; Amazon, $1.7 billion; and Hulu, $1.5 billion.

Big individual program SVOD syndication deals for 2015 will include CBS' “Elementary” to Hulu for $1.5 million an episode; Warner's “Gotham” to Netflix for $1.75 million an episode; Lionsgate's “Orange is the New Black” to Netflix for $2.5 million an episode; and Fox's “The Americans” to Amazon Prime for $1 million an episode.

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