Streaming services are at a turning point, with growth slowing and major companies eyeing consolidation. However, there's optimism about profitability, particularly for Netflix. In a recent New York Times interview with industry leaders like Netflix's Ted Sarandos and Amazon's Mike Hopkins, several key themes emerged: more ads, higher prices, and fewer high-risk TV projects. These changes aim to shift focus from rapid expansion to sustainable profits. Initial low subscription prices are proving unsustainable, leading to steady increases and the introduction of cheaper ad-supported tiers. Executives anticipate further price hikes for ad-free subscriptions to steer users toward ad-supported options. The rise of ad-supported streaming may influence content production, favoring mass-appeal genres akin to traditional network TV over the ambitious projects seen on premium services like HBO. Despite this shift, executives remain committed to finding groundbreaking shows while acknowledging the appeal of proven formats. Predictions include increased investment in live sports, more service bundling, and potential service closures or mergers. Overall, the streaming landscape seems poised to resemble traditional cable TV in many respects, with both improvements like on-demand viewing and challenges such as compensation for talent remaining contentious issues.
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