Streaming is changing how companies make money, for better or worse

Over the summer, Nielsen reported that streaming viewership surpassed cable usage for the first time in the U.S. It's worth noting Nielsen only records on TVs and internet-connected TVs; it's not even measuring mobile or desktop, which means their share of the market is probably even higher.As more and more people are signing up for streaming platforms like Netflix, HBO Max or Disney+, companies are starting to roll out new ad-supported models.

Big blockbuster hits like"Stranger Things" on Netflix or"Wandavision" on Disney+ can definitely draw new subscribers, but it seems the threshold for a new show to survive is pretty high. Even popular shows like"The OA,""Sense8" or"The Baby-Sitters Club" can get canceled after only a season or two. Netflix is particularly notorious for this.

There's a reason the risk of hoping a show will grow and build an audience is much higher for streaming than it used to be for cable. Part of that is because platforms now pay production companies all production fees up front, in exchange for more control over distributing the show. So, there are much bigger losses if a show doesn't take off. Unfortunately, as it's been widely reported, shows with diverse stars and casts seem to be on the chopping block more often.

Source: News Formal (newsformal.com)

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