The video explores the increasing costs of various streaming services like Disney Plus or Netflix. These platforms have raised their prices or introduced ads to generate more revenue. Netflix, for instance, historically relied on subscriber growth or price hikes to increase its earnings. However, facing slower growth and increasing debt, Netflix began converting password-sharing users into paying customers. This move temporarily boosted their subscriber count. Hulu, on the other hand, found success with its ad-supported tier, which attracted more customers and supplemented its income. Despite these strategies, many streaming services remain unprofitable due to high operational costs incurred while competing with established platforms like Netflix. The industry's shift towards ad-supported tiers aims to target a wider audience and improve financial stability.
Vocabulary:
• To fork up: This means to pay money, especially when you have to pay a lot or when it feels like a burden.
• To be reliant on: This means to depend on something or someone. If you rely on something, you need it to work or be there for you.
• Reliably: This means to do something in a consistent and trustworthy way.
• Surge: A surge is when something suddenly increases or rises quickly, often referring to a sudden increase in something like prices.
• Trendsetter: A trendsetter is a person or thing that starts or influences a new trend that others follow.
• To carve out: This means to create or achieve something, usually by working hard to make a space or position for oneself in a particular area or industry.
Source: Vox Youtube channel.