New Media vs. Old Media's Economic Incentives

Old video media: Eyeballs = dollars, because ads = $, back then.

The TV stations with the biggest audiences got paid the biggest ad dollars.

New media: Credit cards = dollars. Subscribers = $

The change: There is a positive-sum game with streaming companies.Wwatching Disney no longer means HBO doesn't get my money, like it would in an old media world. Back then, watching Disney would mean they have my attention, and therefore HBO (in this example) would not.

Today, because I can subscribe to both, they both have a chance at monetizing me.

Now, the only limitation to subscription service revenue is how much I am willing to spend, in aggregate.

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