Rising Content Costs Help Netflix, Hurt Linear Providers
Netflix now is among the reasons video content costs are rising. Netflix, other buyers say, is boosting content prices by snapping up content creators and spending big to do so. But rising content prices are a primary reason linear video subscription prices climb, at rates above inflation, virtually every year.
That is why “skinny bundles” are now such a big trend in the linear video subscription business. With falling demand, ever-higher prices for traditional bundles are becoming unsustainable.
That is even more important when, in the future, most subscription growth is taken either by over-the-top providers or mobile services.