The predictable backstop of subscription plus the nearly limitless potential upside of ad sales is just too tempting in the long run for media companies. They get to have their cake and eat it too. Spotify, Amazon, Netflix and have all eventually given in, despite insisting they never would. Shareholder owned media companies will always gravitate to this model. It’s the only way to maximize quarterly revenue growth.
The predictable backstop of subscription plus the nearly limitless potential upside of ad sales is just too tempting in the long run for media companies. They get to have their cake and eat it too. Spotify, Amazon, Netflix and have all eventually given in, despite insisting they never would. Shareholder owned media companies will always gravitate to this model. It’s the only way to maximize quarterly revenue growth.