Part 7/8:
The streaming industry’s struggles are emblematic of a broader reckoning that many entertainment companies are facing after years of overspending on content. Amazon, despite its substantial profits outside of streaming, recognizes that if their platform cannot turn a profit, they may ultimately abandon it altogether.
This strategic pivot reveals that streaming services are increasingly akin to traditional media outlets—dependent on advertising revenue and subscriber retention, rather than relying solely on subscriptions. As losses mount, companies are left with few options but to squeeze more revenue from users, even if that means reducing the perceived value of their service.