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Being on the Internet breaks the advertising model (CPMs are much, much lower online versus TV ads due to the sales channels they use). Moreover, the Internet h

by exelius 10y ago

Being on the Internet breaks the advertising model (CPMs are much, much lower online versus TV ads due to the sales channels they use). Moreover, the Internet has conditioned people to think "Subscription = No ads!" Hulu isn't the future of TV; Hulu is the future of TV as envisioned by a bunch of major TV networks. I think HBO and Netflix are closer to the future of TV than Hulu is.

icebraining 10y ago
Moreover, the Internet has conditioned people to think "Subscription = No ads!" Wasn't that the promise of the early cable TV? How long did that last?
- dragonwriter 10y ago
  > Wasn't that the promise of the early cable TV? No, early cable TV was a way to provide signals from broadcast (and, thus, ad supported) channels to areas where, for geographic reasons, there was poor reception. (The CATV acronym frequently used for cable TV originated as an acronym for its earlier name, "Community Antenna Television" -- reflecting it as a model of consumers sharing an antenna to receive broadcast signal.) Premium, ad-free content, cable-specific programming didn't turn up until decades later. So, you've basically got it backward: instead of being something that originally promised subscription fees for no ads content but fell away from that, cable is something that initially offered subscription fees for access to ad-supported broadcast content but later evolved to include subscription-based (and pay-per-view) ad-free content available on top of the basic ad-supported content.
- toomuchtodo 10y ago
  > 74% of Netflix subscribers would ditch the service over ads http://bgr.com/2016/06/22/netflix-price-hike-ads/ http://bgr.com/2016/06/22/netflix-price-hike-ads/
  - GFischer 10y ago
    That's not the most rigorous of samples (reddit users), I believe those results might be biased - I think commenters on sites such as Reddit or HN might be more likely to take this kind of actions. I'm not sure what Netflix's endgame is, but they're leaving a LOT of money on the table by going subscription-only.
maxxxxx 10y ago
I am sure people will get quickly conditioned to "subscription = fee + ads".
- exelius 10y ago
  Not when "subscription = no ads" is an option. Which it will be, because a lot of consumers prefer not having ads over saving a dollar or two a month.

by exelius 10y ago

icebraining 10y ago

Moreover, the Internet has conditioned people to think "Subscription = No ads!" Wasn't that the promise of the early cable TV? How long did that last?

dragonwriter 10y ago
> Wasn't that the promise of the early cable TV? No, early cable TV was a way to provide signals from broadcast (and, thus, ad supported) channels to areas where, for geographic reasons, there was poor reception. (The CATV acronym frequently used for cable TV originated as an acronym for its earlier name, "Community Antenna Television" -- reflecting it as a model of consumers sharing an antenna to receive broadcast signal.) Premium, ad-free content, cable-specific programming didn't turn up until decades later. So, you've basically got it backward: instead of being something that originally promised subscription fees for no ads content but fell away from that, cable is something that initially offered subscription fees for access to ad-supported broadcast content but later evolved to include subscription-based (and pay-per-view) ad-free content available on top of the basic ad-supported content.
toomuchtodo 10y ago
> 74% of Netflix subscribers would ditch the service over ads http://bgr.com/2016/06/22/netflix-price-hike-ads/ http://bgr.com/2016/06/22/netflix-price-hike-ads/
- GFischer 10y ago
  That's not the most rigorous of samples (reddit users), I believe those results might be biased - I think commenters on sites such as Reddit or HN might be more likely to take this kind of actions. I'm not sure what Netflix's endgame is, but they're leaving a LOT of money on the table by going subscription-only.

maxxxxx 10y ago

I am sure people will get quickly conditioned to "subscription = fee + ads".

exelius 10y ago
Not when "subscription = no ads" is an option. Which it will be, because a lot of consumers prefer not having ads over saving a dollar or two a month.