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Why the era of cheap streaming is over

2 months ago
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Summary


The era of cheap streaming is over as streaming services raise prices and introduce ads to increase profitability.


Highlights

💸 Streaming services like Disney Plus, Netflix, and Amazon Prime are increasing prices and introducing ads.

📈 Netflix’s growth slowed down, leading to a focus on converting password-sharers into paying subscribers.

📺 Hulu’s ad-supported tier was successful, leading other companies to introduce more affordable ad-supported options.

💰 Most streaming companies are not profitable yet due to high expenses in launching new services.

🔄 Serial churners are unsubscribing and resubscribing to services based on their content preferences, saving money in the process.

🎥 A middle ground approach could be subscribing to a few services indefinitely and hopping around on others.

💡 It’s time to reevaluate our relationship with streaming and find ways to make our streaming diet work for us.


Key Insights

💸 The increase in prices and introduction of ads by streaming services reflect their efforts to become or remain profitable in a competitive market. This highlights the financial challenges they face and the need to find alternative revenue streams.

📈 Netflix’s growth slowdown and the focus on converting password-sharers into paying subscribers demonstrate the importance of subscriber numbers for streaming companies. They rely on a large subscriber base to sustain their business model and drive growth.

📺 Hulu’s success with its ad-supported tier shows that advertising can play a significant role in generating revenue for streaming services. It also indicates that consumers are willing to accept ads in exchange for a more affordable subscription option.

💰 The fact that most streaming companies are not profitable yet highlights the high costs associated with launching and maintaining streaming services. This includes investments in original content, licensing fees, and marketing efforts. It may take time for these companies to achieve profitability.

🔄 The rise of serial churners reflects the changing consumer behavior and the desire for more flexibility and cost savings. This trend emphasizes the need for streaming services to continuously offer compelling content and competitive pricing to retain subscribers.

🎥 The middle ground approach of subscribing to a few services indefinitely and hopping around on others allows individuals to balance their desire for access to a variety of content with cost considerations. It requires a more strategic approach to managing one’s streaming subscriptions and content preferences.

💡 The increasing prices and complexity of streaming services call for a reassessment of our relationship with streaming. It’s important to consider the value we derive from these services and explore alternative ways to access and consume content that align with our preferences and budget.

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