Big Budget Blockbusters Arrive Amid Fears of 'Peak TV'

Crop of expensive fantasy adaptations from Amazon and HBO Max served up at subsidised prices. Financial Times: Since 2016, the veteran US television executive John Landgraf has been predicting the arrival of "peak TV" -- the moment when the number of new scripted shows reaches an all-time high. The streaming boom has proved him wrong every time but he gamely made the prediction again this month, telling guests at the Television Critics Association press tour that 2022 would mark "the peak of the peak TV era." Landgraf, chair of Disney's FX network, conceded that he could be wrong this time too. But there is little doubt that this autumn will present audiences with a flood of some of the most expensive television ever produced. On September 2, Amazon Prime will release its adaptation of The Lord of the Rings, with an estimated budget of $465mn for the first season -- almost enough to make Top Gun: Maverick three times over. HBO Max's House of the Dragon -- the prequel to Game of Thrones -- is reported to have cost $200mn for the season's 10 episodes. At Disney Plus, Star Wars: Andor will lead a large slate of new programmes that include a Pinocchio remake, She Hulk, and a spin-off of the Cars franchise. These shows are being served up to consumers at subsidised prices by streaming platforms making record losses. The only profitable exception is Netflix, but the industry pioneer's market value has plunged almost $200bn over the past year because of slowing subscriber growth. Its share price is languishing at a four-year low. The forthcoming crop of new programming was given the green light during a headier time, when Wall Street cheered as streaming services committed lavish sums to compete. But faith in the streaming business model -- and investor tolerance for profligate spending -- has waned as Netflix's once-blistering subscription growth has gone into reverse. [...] On top of that, there are growing concerns that inflation will bite into discretionary spending, including on streaming services. "Everyone [in Hollywood] is throwing big dollars after big things," said Niels Juul, who was an executive producer of Martin Scorsese's Netflix film The Irishman. "But [subscribers] are inundated now to the point where they are looking at their monthly bills and saying, 'Something's got to go -- I've got $140 worth of subscriptions here!'" Even so, Tom Harrington at Enders Analysis said consumers were still getting a better deal than the streaming companies themselves. "People get through $100mn of TV in a day and say: 'what's next?' From a consumer point of view that is great. But for a video operator, it's clearly unsustainable."

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