Movies that are released in theaters can profit by ticked sold, merchandising and ad revenue but what about streaming sites originals, those only available in digital form and exclusively in their platforms?
In: Economics
Basically, they don’t directly. They want subscribers to stay subscribed though, and for a long time it was cheaper to make their own shows and movies rather than pay the owner of the content more and more each time to keep getting the rights to it. If their subscriber counts continue to rise, then it’s worth it for them. They can see how many people are watching the show and decide if they should renew or cancel it based on that. Now that all the streaming services are putting as many ads in as possible, they will charge advertisers based on how popular the shows are, so they still need to make “good” content otherwise their viewership and ad dollars will plummet.
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