why streaming is becoming cable again
Dummy・2 minutes read
Streaming services are becoming more like cable TV, with rising prices, reduced control over content, and increased advertising. Only Netflix and Hulu are currently profitable, while newer services like Max and Disney+ are working towards profitability.
Insights
- Rising prices and reduced control in streaming services mirror the structure of traditional cable TV, with major platforms like Netflix and Hulu becoming profitable while newer services aim for financial stability.
- The lack of regulation on streaming services, unlike cable TV, has led to increased advertising, ownership changes affecting content availability, and a shift towards formulaic content creation to attract advertisers, highlighting the necessity for a proposed Streaming Act to address pricing, infrastructure support, and consumer protection in this evolving media landscape.
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Recent questions
How have streaming service prices changed over time?
Streaming service prices have surged in recent years, with Netflix's standard plan now costing $16 and the Premium plan $22.99 per month. Major platforms have seen an average 21% increase in prices, moving away from the initial affordability of streaming services.
Which streaming services are currently profitable?
Only Netflix and Hulu are currently profitable among streaming services, while newer platforms like Max and Disney+ are still working towards profitability. This indicates the challenges faced by streaming services in achieving financial sustainability.
What impact do licensing changes have on consumer control?
Licensing changes and media concentration through mergers and acquisitions are reducing consumer control over content availability. Ownership changes due to mergers lead to content moving between services, requiring additional payments to access the same content, limiting consumer control.
Why are ad-supported plans becoming dominant on streaming platforms?
Ad-supported plans are becoming dominant on streaming platforms to increase revenue through advertising, even for paid subscriptions. This shift incentivizes formulaic content creation to attract advertisers, potentially compromising the quality of shows.
How has Netflix's shift towards original content transformed the company?
Netflix's shift towards original content, like "Orange is the New Black" and "House of Cards," transformed it into a media company. This move towards original content creation has been pivotal in Netflix's success and influence in the streaming industry.