Once upon a time, streaming TV came with a promise: sign up, and commercials would be a thing of the past. Streaming giants like Netflix, Amazon Prime Video, Disney+, and HBO Max lured customers with an ad-free experience. However, that era didn’t last long. Ads are becoming increasingly hard to avoid on streaming services.
In a bid to boost revenue, major players like Netflix, Disney+, Peacock, Paramount+, and Max have started incorporating 30- and 60-second commercials in exchange for slightly lower subscription prices. Amazon has even turned ads on by default. Live sports on these platforms include built-in commercial breaks, regardless of the subscription price.
This shift was highlighted when Amazon and Netflix both staged their first in-person presentations during the so-called upfronts, a decades-old television event in New York where media companies try to woo advertisers. Netflix had Shonda Rhimes, the successful executive producer of “Bridgerton” and creator of “Grey’s Anatomy,” talk up the service to marketers. Amazon’s event was packed with celebrities such as Reese Witherspoon and Jake Gyllenhaal and even featured a live performance from Alicia Keys.
The change in viewing experience was perhaps inevitable. Over the past decade, as media companies raced to introduce streaming services to compete with Netflix, they prioritized subscriber counts above all else. However, this strategy led to significant financial losses, causing Wall Street to sour on their businesses.
In response, executives are turning back the clock. They are ordering lower-cost, old-network standbys such as medical dramas, legal shows, and sitcoms. They are offering bundled packages to make consumers less tempted to click on the cancel button. For instance, Disney+, Hulu, and Max will team up later this year. And they are embracing commercials as a way to increase revenue.
While this strategy may boost profits for the companies, it has led to frustration among consumers. One vented on social media, “Why am I paying for Prime Video and getting all these commercials? It is beginning to get annoying.” As the landscape of streaming services continues to evolve, it remains to be seen how consumers will adapt to these changes.
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