The email arrived late last year, a harbinger of a new era. Disney+ was jacking up their annual plan to a whopping $140. It wasn't an isolated incident. Netflix announced their cheapest tier would now come bundled with ads, Amazon Prime would be $3, TV went from $66.99 to $999 a month there are so many great things to watch and they're all spread across so many different Services. I want to watch them all but man does it hurt to Fork up so much money every month to do it it kind of makes you won
Streaming infrastructure is expensive, and all these smaller networks that decided to spin up their own didn’t seem to realise that. Prices go up, ad tiers get added because none of them are actually making any money. It’s just quarter after quarter of loss even with substantial revenue due to the fact that producing content, hosting and then scaling globally to make it available to a wide variety of geographic locations just isn’t cost effective. Even Amazon, the lord of cloud compute itself, hasn’t been able to maintain this.
So in this case, competition limits the only way they make money: people subscribing. Greedy bastards.
The fucked thing is that it wouldn’t be such a huge deal but they all want to make money on the current number of customers instead of their potential. People are poorer and poorer and have to choose maybe one or two services at a time at the prices they are.
They would rather get one customer for $15/mo than 4 or 5 customers for $5/mo. And they together created an environment where it’s hard for any one of them to make the first move. Healthy competition only really works when people act in good faith and none of these people are capable of that even when it benefits them.
Business people are truly dumbest creatures on this planet. “What if we make them poor and then charge them a bunch of money? That makes sense, right? And if they get upset we tell them it’s their fault.”
A lot of the infrastructure is provided to ISP’s free for local caching/deployment. Netflix has the Open Connect program to greatly relieve stress on interconnects and backbones.
If memory serves, ISP didn’t like this and would rather profit from fees for the internet traffic. I feel like those fees and licensing fees account for a significant increase in subscription costs.