streaming services? more like bad services, am I right? Every day, they look more and more like cable television.Streaming has gotten so much worse in the la...
It’s rent-seeking through and through. Market segregation happened because Infrastructure as a Service (IaaS) made it much easier to spin up a streaming platform and every company with an IP catalog wanted their piece of the pie.
Simultaneously, companies that created their own service discovered there is a hard limit on their profits based on the number of active subscribers and that profit is the same whether they watch one hour a month or a thousand. That’s why there has been a rise in ad supported subscriptions. Cheaper per month for the end user? Yes, but they are potentially much more profitable for the streaming company as their income will scale based on the number of times ads can be served.
tl;dr capitalism
It’s rent-seeking through and through. Market segregation happened because Infrastructure as a Service (IaaS) made it much easier to spin up a streaming platform and every company with an IP catalog wanted their piece of the pie.
Simultaneously, companies that created their own service discovered there is a hard limit on their profits based on the number of active subscribers and that profit is the same whether they watch one hour a month or a thousand. That’s why there has been a rise in ad supported subscriptions. Cheaper per month for the end user? Yes, but they are potentially much more profitable for the streaming company as their income will scale based on the number of times ads can be served.