Streaming wars will force media companies to choose between pricey subscriptions and ads
sells Prime Video for $9 a month, but the broader Amazon Prime membership includes much of that content while other shows can be rented or purchased individually.
"Consumers are turning to ad-supported streaming services as subscription fatigue continues to settle in," Brandon Riney, a researcher at Parks, told CNBC in an email. "When discussing attitudes regarding ads on these streaming services, more consumers are willing to endure the ads to watch the content than completely resisting them."
The problem is that the ad experience on streaming is still subpar, with consumers bemoaning how frequently they see the same ad. Stempeck said that services like Disney might end up adding new tiers for people who don't want to pay for subscriptions or who might want to just watch the content occasionally. What's becoming clear is that whether it's for subscription services or ad-based offerings, companies are going to have to step up the quality and stay focused on price to manage an increasingly convoluted market.
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