Many streaming platforms like Hulu, Paramount+ offer cheaper subscription plans with ads. I guess as long as there is an option without ads, it could work. They probably did their studies and maybe see their competition doing better with multiple options.
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The whole model is breaking down. None of these platforms make money on there streaming services. Still burning cash and now with interest rates and cheap money getting tight it’s gonna show. Obviously the Amazon’s and Disney’s have profits from other parts of biz but streaming alone services none make money currently. Netflix especially. Stock down like 70%, it’s a shit show