Lafiel on 22 February 2019
| couchmonkey said: The war is now over streaming services instead of hardware and streaming is a race to capture subscribers. I did some investigation las5 month, and the world of streaming is all about trying to build the biggest market, profits be damned. Netflix makes a tiny operating profit compared to other entertainment companies and hides the cost of all it’s original content as capital expenditures. Spotify can’t make a profit even with something like 150 million subscribers. My conclusion is these businesses will eat sh...er “losses” for a decade or two until the competition is weeded out even while they slowly raise prices or add advertising to their products. Netflix is cheaper than cable now, but add a couple more streaming services and watch them increase prices by $1 every year and we’ll see where we land. |
Yea, the "successful" streaming services (which afaik never made any profits) all are huge loss leaders. I doubt Sony will adopt the same philosophy/strategy and try to maintain atleast a small operating profit on PS Now. I expect them to rely on the strength of their IPs to attract consumers instead of super attractive pricing. The next ~decade will show whether or not that will work out for them.
