Is it through new subscriptions? Ad revenue? Are they just afraid people will cancel their subscription if they don’t keep churning out new content?
In: 3
All of the above. There are a few business models out there:
* subscription only – new content + good shows attract new subscribers, who pay $/month for access to the service.
* ad-supported – sometimes in combination with subscription, companies pay to place ads in the streams
* add-on-value – the streaming content is largely there to attract customers to some other, bigger part of the company
In the “add on” category, consider Amazon Prime. Their Prime Video service was originally just an additional benefit they offered to Prime (shipping) members, who were paying for the privilege of “free” 2-day shipping. The more time a person spends on the Prime Video site, the easier it is to cross-sell them on some other Amazon product or service. Note that Prime Video cross-sells a lot of pay-per-stream content that isn’t included in the subscription price.
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