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Content spending soars as new and traditional-media continue to battle it out

• Despite the recent evolution in the production and consumption of media, the LA market is as important as ever. The local talent and infrastructure has kept traditional media providers here and has attracted companies producing “new-media” where the interplay between technology and entertainment has resulted in proliferation of streaming content.

• Netflix, who currently occupies over 415,000 square feet of office space, and makes use of neighboring studio space, spent more on content than any other streaming provider in 2017, totaling $6.3 billion. The company has announced plans to increase its budget to $8 billion this year, and will release 700 TV, film, and stand-up comedy projects this year.

• Disney, who occupies over 3.3 million square feet of office and studio space in the LA area, spent $7 billion in 2017 on non-sports programming and has subsequently announced that it will end its movie distribution agreement with Netflix and begin offering their own streaming services in 2019. This move by Disney to enter the streaming business is likely pushing other internet content providers to spend more, which will translate into an increase in local real estate demand. 

Source: JLL Research

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