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Why are there more and more ads on streaming platforms ? 📺

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In recent news about streaming platforms, there’s a lot of talk about the introduction of advertising on them. But why are these platforms making this shift? We answer this question posed by one of our readers in this week’s #AskGriots.

Unprofitable platforms 📉

In 2022, only Netflix could claim to be a profitable streaming platform. Other services such as Disney+ and HBO Max (now simply Max) recorded losses of several hundred million dollars in their streaming divisions.

However, it’s important to note that the profitability of streaming platforms can vary depending on various factors such as content costs, unsubscription rates and subscription prices.

New revenue streams 💰

Platforms are looking to increase their profitability by offering more subscription options, introducing advertising and optimizing their subscriber relationships.

Advertising also offers cheaper subscription options for users who are willing to see ads. This hybrid approach seems to appeal to viewers, as according to one study, 58% of those surveyed in Europe prefer to opt for ad-supported models rather than pay a subscription, and this figure rises to 67% in France.

If you have any questions, don’t hesitate to ask us in comments. Your favorite griots will answer them 😁

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