More I see stuff like this the more I believe that these services really aren't making any money and its all smokescreen.
Though this could also just be investors trying to drive up profits instead.
The latter really wouldn't surprise me. A service could be making four times the investment in profit and many investors will still push to get a few more cents out of it at any cost.
It was awhile ago but I read that a lot of streaming services don't make a profit and I can understand the logic. With ads, there is a direct link between a show and it's profits. The more people watch a show, the more people see the ads, the more a company can charge for ads on that show. Without ads it becomes difficult. It doesn't matter if 100 people watch or a million, the profits are the same.
I feel it's inevitable that streaming services are going to go back to ads. It's the better business model.
More I see stuff like this the more I believe that these services really aren't making any money and its all smokescreen.
Though this could also just be investors trying to drive up profits instead.
The latter really wouldn't surprise me. A service could be making four times the investment in profit and many investors will still push to get a few more cents out of it at any cost.
It was awhile ago but I read that a lot of streaming services don't make a profit and I can understand the logic. With ads, there is a direct link between a show and it's profits. The more people watch a show, the more people see the ads, the more a company can charge for ads on that show. Without ads it becomes difficult. It doesn't matter if 100 people watch or a million, the profits are the same.
I feel it's inevitable that streaming services are going to go back to ads. It's the better business model.