A record amount of investment, over $200B annually, is being poured into content by top players, according to a new analysis by KPMG audit, tax and advisory firm. That figure has climbed at a 10% compound annual growth rate (CAGR) since 2020, with some moderation post-pandemic—raising a question across the industry: “Have we reached peak content?”
KPMG finds the industry is far from saturation, but as the definition of ‘content’ expands, how media companies spend on content is becoming more critical than ever. To compile this analysis, KPMG LLP undertook a structured research program combining primary and secondary sources between April and August 2025. Content spend estimates are based on a select group of large, publicly traded media companies, with financial data spanning 2020 to 2024.
Scott Purdy, Media Strategy Leader, KPMG US observed that companies are learning from their past mistakes: “It’s not just about ‘more content’ now. We’re seeing more deliberate investment. Leaders are using their learnings from the past few years and the increasing power of data-driven insights to prioritize their bets, shape creative decisions and drive better returns,” noted.
The shift to streaming and creator-led platforms continues to reshape the landscape. Traditional studios are now adopting platform-like monetization and feedback loops, while digital platforms are moving upstream with higher production values, brand partnerships and more curated content. The result is a hybrid model that blends creative control, audience access and monetization strategies across both. Next, let's go over some of the main highlights of the report
First, experts believe that the industry is far from saturation. This is primarily because content spend is not growing uniformly across formats and genres. The definition of both content and its 'peak' continues to expand—albeit moderately—even as the industry tightens its focus on profitability rather than simply chasing subscribers. On the other hand, the growth of user-generated content has outpaced other segments and is likely to continue expanding, driven by increased advertising dollars and a robust creator economy."
On the other hand, while AI is making an impact, its scope is still evolving. AI will make certain elements of the production process likely both faster and cheaper over time. At least in the near term, AI will augment the production process, rather than take it over. Key areas AI will have a significant impact on include content personalization, customization and ad targeting.
Frank Albarella, US Sector Leader, Media & Telecommunications, KPMG US, commented on this: 'AI is rewriting the content playbook—creation, personalization, distribution, monetization. Media leaders who are thoughtfully and strategically experimenting with AI today are building tomorrow’s competitive advantage,' he explained."
The report also recommends that, as models converge and stakes rise, companies must focus on key strategies to position themselves for the future. But how does this play out in practice? Companies can take several approaches to position themselves for the future. One key strategy is to adapt content strategy and partnerships. This involves forming strategic alliances around intellectual property—not only with other media companies, but also with content creators, technology firms, and telecom providers—to scale content and expand reach.
Another important approach is to turn data into a competitive advantage. By investing in data and AI capabilities, companies can enhance decision-making, personalize consumer engagement, reduce churn, and improve ad targeting, creating measurable impact across their operations. Building hybrid models that can scale is also essential. Flexible business models that can shift between B2B and B2C allow companies to implement direct-to-consumer strategies while still maintaining traditional revenue streams, providing both resilience and growth opportunities.
Finally, companies should redefine the investor story. This means reassessing traditional KPIs and considering more nuanced engagement metrics that better reflect success in a converging media landscape, ensuring that performance is evaluated holistically and strategically.
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