Source: The Verge
Every major streaming platform—Netflix, Disney+, Amazon Prime Video—now treats ad-free viewing as a paid upgrade rather than a baseline feature, effectively pricing out interruption-free viewing. This reflects a deliberate business model shift: platforms accepted lower margins and user growth during expansion, but are now extracting value by segmenting customers based on ad tolerance, knowing a substantial cohort will pay $3-8 monthly to avoid ads. The move works because streaming has shifted from novelty to necessity, giving platforms pricing power they lacked when cord-cutting was still countercultural.