This is because consumers can no longer afford the other plan:
“In the case of Netflix, for example, the cost of paying for its cheapest ad-free package is more than twice the price of its ad-supported tier.”
When you introduce ad supported plans and then jack up the price of ad free, you end up with this 60/40 split described in the article.
Streamers want you on their ad-based plan. They make more money by double dipping: you pay them for the what the service used to cost, and then advertisers pay them for your eyeballs on top of that.
This is because consumers can no longer afford the other plan:
“In the case of Netflix, for example, the cost of paying for its cheapest ad-free package is more than twice the price of its ad-supported tier.”
When you introduce ad supported plans and then jack up the price of ad free, you end up with this 60/40 split described in the article.
Streamers want you on their ad-based plan. They make more money by double dipping: you pay them for the what the service used to cost, and then advertisers pay them for your eyeballs on top of that.
Advertising and subscriptions combined is the same greedy, slimy business cable tv ran that pushed people to piracy or sub/ad only streaming services
Won’t ever go back to Netflix. Need a link so I can "purchase " 😉 their products?