This doesn't jive with how pricing typically works. There is no such feedback loop, at least not one that is as simple as you're making it out to be. Consider

This doesn't jive with how pricing typically works. There is no such feedback loop, at least not one that is as simple as you're making it out to be. Consider that your feedback loop implies a kind of symmetry by which TV stations could presumably also increase revenue by decreasing ads and attracting viewers in the process. If TV stations have good reason to believe that increasing the amount of time dedicated to ads would increase revenue, they would have already done so a long time ago regardless of streaming. My suspicion is that TV is increasing ads because people are moving to streaming without any kind of feedback loop involved. Those who are left willing to watch TV will do so regardless of increased advertisements. It's not that ads are pushing people to streaming creating some kind of feedback loop, it's that people are simply moving to streaming because it's a better product across a multitude of factors and those who are stuck with TV will continue to be stuck with it, ads or no ads.