From The Verge · Charles Pulliam-Moore · · 2m
Streaming is becoming cable all over again
As streaming services struggle to grow, they're copying the old cable playbook with bundles, ads, and channel guides.
In brief
As streaming services struggle to grow, they're copying the old cable playbook with bundles, ads, and channel guides. Streaming platforms are recreating cable's business model because it turns out the old guard got some things right. Originally reported by The Verge.
Netflix ditched DVDs for streaming
Around 2006, Netflix abandoned plans for a physical box and pivoted to streaming after seeing people watch grainy videos on YouTube. This shift turned Netflix into a powerhouse that threatened traditional cable.
Streaming became the dominant way to watch
Netflix's binge model and instant access to huge catalogs attracted millions of subscribers starting in 2012. Other companies like Amazon, Disney, and NBC launched their own services, and cable subscriptions began declining.
Too many services, too many price hikes
Streaming is now how most people watch TV, but the market has matured and it's harder to find new subscribers. Companies have raised prices repeatedly, making it much more expensive than when streaming first launched.
Free ad-supported channels look like cable
Services like Tubi, Roku, and Pluto TV offer free content with ads and organize shows into channels, mimicking old cable interfaces. These FAST services keep things simple instead of overwhelming users with endless choices and algorithms.
Streamers are copying cable's tiered packages
Almost every major streaming company now offers bundles that let you access multiple services for less money. Companies like Verizon and T-Mobile include streaming bundles as perks, just like cable's tiered packages.
Always-on channels are coming back
Streaming services are launching channels that play continuously without requiring you to pick episodes, similar to how HBO aired on traditional television. This helps reduce decision paralysis and keeps users engaged.
We're coming full circle to cable
If streamers embrace paywalled always-on channels, bundles, and more price increases, the experience will feel almost identical to traditional cable. The streaming wars have led companies back to the old guard's playbook.
Vertical content targets mobile viewers
Streamers are experimenting with vertical videos for mobile users, partly in response to TikTok's success. This signals that Hollywood is getting serious about making short-form dramas for phones.
The short version
Streaming platforms are recreating cable's business model because it turns out the old guard got some things right.
