Free tiers are Hollywood’s next big idea in the streaming wars
Free tiers could help paid streamers fight the rise of services like YouTube and Tubi.Disney and Paramount are exploring free tiers, Business Insider has reported.However, Netflix's co-CEO suggested that making some content free can be risky.To free, or not to free?That is the question for paid streamers like Netflix, as free services, and YouTube in particular, attract TV viewers.Hollywood giants Disney and Paramount Skydance are exploring adding free tiers to their subscription services to build audiences, grow advertising revenue, and turn curious newcomers into customers, Business Insider previously reported. And Netflix co-CEO Greg Peters said in mid-July that "a free offering could make sense in some markets."Free tiers could define the next stage of the streaming wars as services look to win over consumers sick of stream-flation.
Reported by 1 outlet — Business Insider. See all sources ↓
Free tiers could help paid streamers fight the rise of services like YouTube and Tubi.Disney and Paramount are exploring free tiers, Business Insider has reported.However, Netflix's co-CEO suggested that making some content free can be risky.To free, or not to free?That is the question for paid streamers like Netflix, as free services, and YouTube in particular, attract TV viewers.Hollywood giants Disney and Paramount Skydance are exploring adding free tiers to their subscription services to build audiences, grow advertising revenue, and turn curious newcomers into customers, Business Insider previously reported. And Netflix co-CEO Greg Peters said in mid-July that "a free offering could make sense in some markets."Free tiers could define the next stage of the streaming wars as services look to win over consumers sick of stream-flation. YouTube has enjoyed significant growth, as have free, ad-supported TV apps like Tubi and The Roku Channel, which are known as FAST services. Those three free streamers had a 19.1% viewership share on US TVs in May, according to Nielsen, up from 17.2% a year earlier.While Apple TV and Paramount+ let users sample some full episodes, most paid streamers don't have substantial free offerings."A genuinely free, advertising-funded tier is entirely feasible and could serve as a meaningful differentiator, particularly as consumers become more selective about the growing number of subscriptions they maintain," said media industry analyst Paolo Pescatore of PP Foresight.Free streaming tiers also carry risk, since they could cannibalize a platform's subscription revenue if paid users trade down, said Greenlight Analytics analyst Brandon Katz.
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- What's the story?
- Free tiers could help paid streamers fight the rise of services like YouTube and Tubi.Disney and Paramount are exploring free tiers, Business Insider has reported.However, Netflix's co-CEO suggested that making some content free can be risky.To free, or not to free?That is the question for paid streamers like Netflix, as free services, and YouTube in particular, attract TV viewers.Hollywood giants Disney and Paramount Skydance are exploring adding free tiers to their subscription services to build audiences, grow advertising revenue, and turn curious newcomers into customers, Business Insider previously reported. And Netflix co-CEO Greg Peters said in mid-July that "a free offering could make sense in some markets."Free tiers could define the next stage of the streaming wars as services look to win over consumers sick of stream-flation.
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- 1 outlet, average source rating 6.0/10.
- When was it last updated?
- 2m ago.
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Free tiers are Hollywood’s next big idea in the streaming wars
Sources1TypeCoverageBusiness Insider