the problem i have, that nobody has been able to really explain to me, is how the economics of streaming should be made to work.
content is insanely expensive to make. even with all of Netflix’s recent shitty changes, their operating margin is still only about 13%. that isn’t enough cash left over to fund production of every single show they don’t have. and it’s important that they actually be able to fund production, because unlike 10 years ago, most productions no longer rely on first runs on OTA or cable TV to make their money
so it seems to me there are three paths here:
the industry puts everything on a single service and dramatically increases the base price (remember cable? my parents paid twice as much for it in 2005 as i spend today on streaming services)
the industry puts everything on a single service and dramatically scales back production (remember OTA TV?) to fit within the budget afforded by a reasonable subscription price
studios branch off into competing streaming services
i’m not trying to start a fight or defend shitty corporate behavior (no one will ever get me to pay for ads), i just want to know how people think this could work in a way that balances out