A sandwich video that won’t make it on the air

Video production companies are being forced to compete with the likes of Facebook and Netflix, in order to reach consumers.

A recent study found that video production companies spent more than $1 billion on production costs in 2014, a 7% increase over 2013.

A report released by the International Business Times says that production costs increased more than 50% in the United States in the first half of 2015, a number that’s likely to rise further as the economy recovers.

The report says that the most important challenge in video production today is “costs associated with content creation.”

“The industry is facing an unprecedented period of uncertainty and disruption in the industry, as a number of key production businesses—including those that were recently launched in the U.S. and Canada—have struggled to survive the new environment,” the report says.

“We have seen a significant increase in costs associated with the creation and distribution of content, which has led to a significant gap between the amount of money available to create content and the amount that content creators can make from the content they produce.”

The industry, the report adds, is also facing “significant challenges in terms of digital distribution and monetization of content.”

According to the report, the digital divide between traditional distribution and streaming platforms is at its widest in five years, with nearly half of all new content being streamed.