The streaming wars have a winner — in this real estate sector
Hollywood was running out of studio space even before the pandemic hit.
Now after a stay-at-home year, appetite for streamed entertainment, including original content, is surging. So, too, is demand for high-quality soundstages, creative labs and production offices.
How much are consumers bingeing? COVID-19 fueled a 74% year-over-year increase in streaming-video demand, according to an October report from CBRE Americas Research, a commercial-real-estate services firm.
Netflix Inc. NFLX, +0.17%, Apple Inc. AAPL, +2.43%, Amazon.com Inc. AMZN, +0.61%, the Walt Disney Co. DIS, -0.54% and its Disney+ and Hulu platforms, and other streaming companies that also create their own shows — not to mention legacy film studios, network television and advertising interests — have needed every last inch and more of an estimated 11 million square feet of production space in a handful of North American cities.
“Content is king,” said Spencer Levy, senior economic advisor at CBRE. “It’s only getting more important and getting more diverse.”
Viewing habits may ease up once consumers venture back into restaurants and sports arenas, but the 24/7 streaming trend, with watching on the go and across multiple devices, is expected to stick.
By: Joy Wiltermuth