BagHead
Registered User
Good post!Which is funny because streaming companies saw this opportunity and jumped at it BUT most streaming companies also lose money. There’stoo much maybe saturation. I believe I counted, at one point, 18 different streaming services -this does not including TV streaming such as YoutubeTv or Sling.
There’s not THAT much good content to support 18+ streaming services, plus who can afford that? Most people ditched cable because it was/is in the $100+/month.
If they, the companies, were smart, they would consolidate to maybe 5 streaming services max. But instead of content companies each having their own streaming services, they would license out the content to (numerous different) streaming services.
Much like how you used to be able to (can you still?) watch The Office on Netflix. Instead of having to purchase a subscription to PeacockTv or whatever it’s called.
As a side note, before the boom of streaming platforms, online piracy was at an all-time low. After the boom, or currently, piracy is, or is close to, an all-time high. In short, people don’t want to be nickel and dimed.
See the outrage over BMW trying to charge for seat warmers as a subscription.
Economies of scale is the key to profitability in streaming. Netflix began their streaming business early enough that they were able to hoover up subscribers by borrowing TV shows like The Office for a song, which allowed them to spin up their own TV show and movie creation, and build a better library than the rest while being able to continually add to it. It's become a flywheel, where the new content gains new subscribers, and new subscribers bring in enough money to create new content, which gains them even more new subscribers.
The legacy networks got into streaming about 20 years late, have a small subscriber base, and so cannot fuel new creations that way. People watch what they want in the library, then unsubscribe. They're learning the hard way that you need to reach a certain scale to make streaming profitable. I think one or two non-Netflix streamers may survive long enough to reach scale, but not many more than that. My money is on Disney and Amazon, and only because they have other sources of revenue that aren't actively dying. Then again, Bob Iger sucks at running Disney, so we'll see what happens there.