Online entertainment platforms Netflix and Amazon are now spending more on programmes than traditional television networks, said a new study published Monday.

Analysts said the two streaming giants spent $7.5 billion (6.6 billion euros) last year on their own series and shows, far more than big players such as the BBC and even ahead of US networks like CBS, HBO and Turner.

Netflix and Amazon more than doubled their expenditure on programming from 2013 to 2015, IHS Markit said in the first findings of its new production report released to coincide with the MIPCOM world entertainment trade show in the French resort of Cannes.

Amazon spent $2.67 billion in 2015, and Netflix nearly twice as much at $4.91 billion.

"The levels of investment we are seeing from Netflix and Amazon are only topped by Disney ($11.84 billion) and NBC ($10.27 billion)," said Tim Westcott, senior IHS senior analyst.

He said the huge sums flowing in from the big two as well as Hulu in the US and China's Youku Tudou, iQifyi and Tencent are "shaking the foundations of the traditional TV industry", he added.

However, he said it was very premature to declare that the era of traditional TV was over.

"Netflix and Amazon have come hard on the heels of a boom in production of original drama and comedy by the likes of (cable networks) AMC and FX in the US."

There were 148 new drama shows aired by basic cable networks in the US last year, up from 96 in 2013, the report added.

So far this year, there have been 113 scripted basic cable shows, 78 on the networks, 31 on premium cable and 57 online.

As recently as 2012, only three online shows were made.

Netflix reassures with growth but hits pause in China
San Francisco (AFP) Oct 17, 2016 - US on-demand television service Netflix on Monday posted earnings that dispelled concerns about growth and said it was shifting tack in China due to a "challenging" regulatory environment.

Netflix shares soared nearly 20 percent to $119.60 in after-market trades that followed release of quarterly earnings figures that showed revenues topped $2 billion for the first time in a 39 percent increase from the same period a year earlier.

Netflix said that it gained 3.57 million paid subscribers to its streaming service in the quarter, with most of those coming from outside the United States.

The company finished the quarter with 86.74 million subscribers, higher than it had expected.

Of that number, 39.25 million subscribers were international, in a sign that the company was gaining momentum as a global television service.

Netflix was optimistic for the current quarter, forecasting a gain 5.2 million subscribers, with 3.75 million of them from countries other than the US.

Netflix credited a strong line-up of original programming including "Stranger Things" and "Narcos" with helping win fans to the service.

The earnings report reassured investors after growth of only 1.68 million subscribers in the previous quarter dampened enthusiasm for shares on Wall Street.

Netflix is the world's leading internet television network, boasting a presence in nearly every country after a expanding globally early last year.

The on-demand television service credited with giving rise to "binge viewing" has won devotees with its own hits such as "House of Cards" and "Orange is the New Black."

Netflix has also been winning over superhero fans with original programs made in collaboration with Marvel.

Notably missing from Netflix's global footprint is China.

"The regulatory environment for foreign digital content services in China has become challenging," Netflix said a letter to shareholders.

"We now plan to license content to existing online service providers in China rather than operate our own service in China in the near term."

Netflix said it expected revenue from licensing content to providers in China to be modest, and that it still has "a long term desire to serve the Chinese people directly" with its own service there.

For the recently ended quarter, Netflix revenue climbed 32 percent to $2.3 billion and net income leapt 75 percent to $52 million. Per share earnings for the quarter and that forecast for the remainder of the year were better than what was expected by analysts.