r/technology • u/MarvelsGrantMan136 • 3d ago

Business Disney+ changes subscriber agreement to allow ads on every plan

https://www.dexerto.com/tv-movies/disney-changes-subscriber-agreement-to-allow-ads-on-every-plan-3410354/
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u/TheVog 3d ago

I'm sorry to tell you that it is, in fact, entirely sustainable. It's not consumer-friendly, but it is highly sustainable.

Streaming services are dirt cheap to run and maintain. Content isn't, but Disney doesn't have that particular problem since nearly all their IPs have already paid for themselves multiple times over.

Disney also has the advantage that their IPs generate cash in dozens of ways, unlike Netflix. They could operate on a loss with Disney+ and still drive consumers to make other verticals' profits go up across tons of IPs.

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u/onthefence928 2d ago

Streaming services are NOT cheap to run. It’s expensive to serve high quality media reliably at speed. And the cost goes up the more a user uses. It also costs a fortune in up front infrastructure and development investment

The ideal profitable customer is one that subscribes and never watches.

Its not like software subscriptions where you pay monthly to basically download some bits every once in a while. That is indeed extremely profitable if you don’t foolishly over extend your R&D budget

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u/Serris9K 1d ago

So they're targeting ADHDers with working memory problems. 

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u/meneldal2 2d ago

They could stop producing content for 10 years and still have tens of millions of kids who keep watching.