Netflix's Subscription Model Change Is Unlikely to Solve Its Problems

The streamer joining the AVOD space presents a new ad mix for CTV and a big win over cable

Advertisers have been jumping through hoops to navigate the streaming wars.

In the beginning, premium streamers like Netflix brought a new way to watch shows and movies with an ad-free subscription model. After seeing their success, non-premium streaming companies joined the race and introduced ad-supported subscription options, giving us household names such as Hulu.

Even though consumption of streaming has outpaced cable, subscriptions are slowing down and streaming services need new ways to generate revenue. Netflix is now changing the streaming world by openly considering an ad-supported, lower-tier option, even after being a staunch critic of this system.

This follows a rise in ad-supported subscription services, such as the lower-cost services from Hulu and a forthcoming offering from Disney+.



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