Hollywood budgets rise, but the money isn’t headed where you think.
Key Takeaways
- Major studios like Disney, Paramount, and Netflix are increasing content budgets for 2025–2026.
- Most new spending is flowing into sports, franchises, and international productions — not traditional Hollywood scripted TV and film.
- Creators, actors, and crew may see fewer domestic opportunities as studios prioritize global markets and sports-rights deals.
- The industry remains in a post-strike realignment, with strategic mergers and acquisitions shifting the landscape.
Hollywood Spending Is Back — But Focused Elsewhere
After several years of stalled spending, strikes, and shrinking budgets, the entertainment industry appeared to get early holiday cheer: both Paramount (under new CEO David Ellison) and Disney announced major boosts to their 2026 content budgets. Paramount plans to increase spending by $1.5 billion, while Disney expects to raise its budget by $1 billion, reaching roughly $24 billion.
These declarations come after years of tightened belts across the industry. As Ellison told investors, “We need to increase our investments… in content.”
However, where that money is going paints a more complicated picture for Hollywood workers.
A Post-Strike Industry Still Resetting
The writers and actors strikes of 2023 froze productions across the board, forcing every major studio to cut back. Even before the strikes, FX chief John Landgraf declared the end of Peak TV, highlighting an already declining trend in scripted output.
A report from MoffettNathanson shows:
- Apple & Amazon: flat spending
- Warner Bros. Discovery & Disney: maintaining current spending levels
- Paramount: down 7% during its sales process
- NBCUniversal: reducing spend
- Netflix: the only meaningful increase
This led to a “content plateau” — a significant slowdown in new scripted production.
Now, with the latest announcements, studios seem poised to reverse course. But the renewed investment is not aimed at boosting Hollywood’s scripted ecosystem.
Sports Rights Are Dominating Studio Budgets
The most aggressive spending isn’t going to prestige dramas or blockbuster films — it’s going to sports, sports-adjacent programming, and mega-talent deals.
Recent highlights include:
- $76 billion NBA rights deal across NBCUniversal, Amazon, and ESPN
- Paramount’s $7.7 billion UFC deal, launching next year
- Major investment into talent such as Taylor Sheridan and the Duffer Brothers
Sports and franchise content provide predictable ratings, stable advertising revenue, and global appeal — making them a safer investment than traditional scripted entertainment.
Global Content Takes Priority Over U.S. Productions
Even as budgets increase, the share actually going to Hollywood is shrinking. Streaming giants have learned that non-U.S. productions can:
- cost less,
- travel globally, and
- sometimes outperform Hollywood originals.
Think: Squid Game (Korea), Adolescence (Japan), Money Heist (Spain) — all breakout global hits.
Executives at Paramount and Disney have made it clear:
“Our content investment is going to be global, not just domestic.”
— Disney CFO Hugh Johnston
Studios are pivoting to local-language productions to unlock new international markets, where subscribers are still growing. For Hollywood creators and crew, this means fewer home-base opportunities despite larger corporate spending totals.
Why This Matters for Entertainment Professionals
For actors, writers, directors, and behind-the-scenes talent in Hollywood and Atlanta, the shift means:
1. Fewer U.S.-Based Scripted Productions
More budget is flowing toward global slates instead of domestic projects.
2. More Demand for Franchise Content Specialists
Studios are investing heavily in brand-building creators (e.g., Sheridan) and scaling established IP.
3. Rising Value of Sports-Adjacent Programming
Docuseries, athlete-driven brands, and live sports events are becoming core revenue drivers.
4. Increased Competition for Hollywood Jobs
With spending flowing overseas, U.S. professionals may face tighter pipelines unless attached to franchises.
5. Growing Opportunities Abroad
International productions are expanding quickly, opening doors for globally minded creatives willing to work across markets.
The Bottom Line: A Mirage of Rising Budgets
Though the balance sheets show rising content budgets at studios like Disney, Paramount, and NBCUniversal, much of that investment is being redirected away from Hollywood. The industry is entering a globalized phase where:
- Sports rights dominate,
- International productions expand, and
- Scripted Hollywood content receives a smaller slice of the pie.
The spending is real — but the impact on Hollywood’s creators will be far more limited than the top-line numbers suggest.
