Streaming

 Not so long ago you could have a Netflix subscription and get a huge catalogue of video content. Content producers were selling old shows in bulk and even some of the new shows. The combination of regular TV plus Netflix was enough. 

However, everyone else noticed that Netflix was attracting subscriptions. Subscription TV on demand became popular as connection speed grew, and the technology improved. Watching content on the train or bus during a commute became a thing. 

Slowly new services offering exclusive content arrived. Netflix already knew this was going to happen, so they started creating their own content like House of Cards. Must see shows brought people in. We now have Disney+, Paramount+, and more. The offer from Amazon is their Prime Membership. Delivery and TV. The offer from Apple is part of the range of services that make up their ecosystem of hardware and software. 

There are others. Some localised to markets like the USA. When you add it all up these services cost a lot per month. 

Predictably some people just pay a one-month subscription, binge their favourite shows, then unsubscribe. Streaming services are countering this by releasing shows weekly, like conventional broadcast TV, to maintain long term subscriptions. The streaming services are pumping billions into creating shows but only earning millions. They prioritised market share over profit. 

The crunch is coming. Netflix now has an advertising supported tier. It has raised prices. Streaming services are reporting losses instead of profits. Both Apple and Amazon have offers tied to other businesses. They have the protection of greater diversification. 

The shakeout is beginning with smaller services merging. However, the finances don't add up. 

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