In the evolving digital and tech space, streaming platforms juggle between ads v/s subscription models. The ad-based model usually offers free content to the users, but it takes away the benefits of enjoying uninterrupted videos and clips. Though the subscription model enables customers to enjoy uninterrupted videos, it takes away a primary earning source from the publishers. Therefore, the question: Can ad-based and subscription models co-exist?
Here are our viewpoints on the ads v/s subscription debate:
Ads are the future
Streaming services have successfully integrated subscription based model. This happened after a rise in audience demand for quality content according. Many publications are shifting to subscription models. This model has fewer middlemen and is less-disruptable business.
Ad networks and exchanges soon replaced ad agencies with advancement in technology. This boosted communication between publishers and advertisers. Programmatic advertising by Google, Facebook and Amazon dominate the digital scene. Most realize that the future of monetization lies in ads.
Ads vs Subscription: Creating multiple packages for
Publishers can create a free plan, standard plan (for users who don’t mind watching a few ads), and premium plans (for ad-less experience) to accommodate the preferences of their diverse audiences.
Irregular subscriber base across regions
The preference to avail subscriptions to enjoy an ad-free experience is growing these days. In the United States, video subscriptions grew to 43.9% in just the last year, followed by music subscriptions that increased to 39.3%. However, in the United Kingdom, only 26.7% of users availed video subscriptions, and 25% of users benefited from music subscriptions. Therefore, the platforms witness irregularity in the customers’ preference concerning region or country.
Creating ads as a part of the content
The perfect alternative for those confused between ad-based and subscription-based models can be creating content with ads as an integral part of them. We have seen how YouTube influencers subtly promote a brand or product while resolving the issue of customers. Similarly, streaming platforms can also ask their creators to create content that is meant for advertisers.
With the varied preferences of customers when it comes to watching adverts, ad-based and subscription-based models can certainly co-exist. Ads will continue to be a major source of earnings for platforms that don’t have a large subscriber base. Subscription-based models will work only for the platforms that offer high-quality, unique, and unmatched content. Also, the platforms that would want to leverage the benefits of both can offer free viewing experiences to target a larger audience. Once the users subscribe to one of their packages, the ads can be reduced or eliminated.