Ad-Free or Ad-Supported- Which is Better for Online Video Streaming?

Streaming service providers today are looking to address the dilemma between ad-supported video services and subscription-based ad-free models.

FREMONT, CA: Among all the vibrant developments that are rocking the media and entertainment industry at the moment, video streaming platforms have created the highest amount of buzz. The demand for online video streaming services is such that most of the established entertainment studios are releasing their own streaming platforms. This has resulted in an unbelievable amount of competition among media and entertainment firms. While some companies have already asserted their supremacy in the business by being early starters, new entrants are overcoming challenges by offering innovative service models. Currently, there the most favored alternatives include ad-free subscription-based services and ad-supported, free services. Choosing the right model is now the key to succeed in the streaming wars as companies look to stick to their strengths.

While innovations and uniqueness are the major factors that can help video streaming platforms gain popularity, addressing customer demands is also crucial. A streaming platform should first evaluate the audience it wants to target and the content it wants to host. After that, it becomes easier for companies to determine whether ad-free or ad-supported services would work better. Advertisements have been a source of revenue for several streaming platforms for some time now. A certain group of viewers prefers browsing free content, and thus opt for platforms that give free access.

On the other hand, there is another category in the audience that is ready to invest more to enjoy ad-free video content. The companies that are targeting such a dedicated audience base need to develop their platforms and content accordingly. Niche content generally forms the majority on paid streaming platforms. Customer experience becomes especially valuable for such platforms. According to a survey in the US, 44 percent of respondents mentioned the ad-free experience to be the top reason they opted for subscription-based video platforms.

Video streaming platforms delivering advanced services using modern technological capabilities today have the scope of creating optimized business models. Going forward, flexible, and customizable video streaming platforms are expected to have the most attractive market potential.

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