Netflix Inc. once embodied the cutting edge of media, from its early days of sending DVDs by mail to its eventual transformation into a utopia of low-cost, high-quality, ad-free entertainment.
But an ad environment of any sort isn’t what streaming customers have come to expect. Cord-cutters once strove to save money by avoiding the costly cable bundle, and they got a better viewing experience in the process, as they were able to watch programming on demand without interruptions. Streaming services are now counting on being able to hold long-term subscribers hostage. Their children, for example, may hardly remember watching any sort of programming with advertising. Meanwhile, the companies have a fallback, as budget-conscious consumers will have to suffer through ads by playing into a growing revenue stream for Netflix and its peers — or else they’ll have to give up watching streaming services altogether.
But consumers can always walk away. That may actually happen — if the costs of streaming becomes too ridiculous, these services will see more departures. This isn’t what consumers signed up for, but if too many leave or cancel some of their services, the prices may still go up to make up for lost customers.
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