You may have noticed an increasingly familiar charge on your credit card: $17.99 to
Netflix, $14.99 to Prime Video, $11.99 to Disney +, and the list goes on. What began as a
consumer-driven media landscape, one where large corporations went into debt to compete for
our attention, has shifted into a far more expensive reality for viewers.
In the early days of streaming, platforms invested heavily in premium original content
and acquired expansive libraries of existing fan favourites, all while maintaining low
subscription prices. The appeal to consumers was simple: more choices, no ads, binge-ready
viewing, and greater control. However, as the industry matured, consumers were the ones who
ended up paying the price for that growth.
In 2022, Netflix hit a wall, experiencing its first major loss of over a million subscribers.
Like any industry constrained by population size and disposable income, there’s a ceiling to
growth. Netflix became aware that accounts were being shared between multiple households and
cracked down on password sharing. Other platforms quickly followed suit. Initially, the strategy
worked, providing a temporary boost in subscribers, but it didn’t translate to sustainable revenue
growth. To compensate streamers began adopting ad-supported models, a strategy Hulu had
already proven to be profitable. As ad-supported tiers became more common, some consumers
pushed back. For many viewers, this marked the breaking of streamers' original promise to great
content free from the interruptions of advertisements that defined cable.
As prices continue to rise, consumers are forced to adapt. Roughly one in five
subscribers now engage in a practice dubbed "serial churning,” which refers to individuals who
subscribe month-to-month based on what they want to watch, forcing platforms to deliver on
their promise of producing culturally relevant originals to keep subscribers watching. Other
viewers, however, are moving away from paid streaming altogether. Despite popular belief,
Netflix actually isn’t winning the so-called streaming wars. In a climate where consumers have
grown increasingly frustrated with hefty charges and content spread across multiple platforms,
they’ve turned to a service which proves entirely free: YouTube.
While YouTube may not fit the traditional definition of a streaming service, it has
become an undeniable key player in the attention economy. The platform boasts over 3.7 million
uploads a day, offering an unparalleled volume and diversity of content. No longer limited to
tutorials and vlogs, YouTube is instead shifting towards high-quality long-form content that feels
more real to viewers who are connecting with specific creators. In fact, many popular YouTubers
say that in recent years, the majority of their views now come from audiences watching on
televisions, with big-screen viewing growing over 400% (CNBC).
In recent weeks, the conversation surrounding consumer power has become highly
relevant, with Netflix primed to acquire Warner Bros., while Paramount has countered with a
hostile bid. If Netflix succeeds, two of the four largest streaming platforms would merge,
weakening competitive pressure to release high-quality content, reshaping theatrical release
models and reducing market competition, even further limiting consumer leverage. Prices are
unlikely to fall anytime soon; Netflix alone has raised its prices by 125% over the past decade.
Gen Z plays a fascinating role in driving the future of how media is consumed. While
discussing merger plans, Netflix CEO Ted Sarandos recently cited TikTok as one of Netflix’s
largest competitors. While traditional film and television conventions would argue that TikTok
exists as an exclusively indirect competitor, research by Adweek suggests that 61% of Gen Z
prefer user-generated content. As that content creeps off our phones and onto our televisions, it
sets up a thought-provoking future for the entertainment industry. Streaming may be growing
more expensive and corporate, but audiences still hold one advantage. In an industry built on
engagement, our time and attention remain our most valuable currency. This begs the question:
as content evolves, prices climb and culturally relevant viewing shifts, where will we choose to
spend it?