Technology
This is the official technology community of Lemmy.ml for all news related to creation and use of technology, and to facilitate civil, meaningful discussion around it.
Ask in DM before posting product reviews or ads. All such posts otherwise are subject to removal.
Rules:
1: All Lemmy rules apply
2: Do not post low effort posts
3: NEVER post naziped*gore stuff
4: Always post article URLs or their archived version URLs as sources, NOT screenshots. Help the blind users.
5: personal rants of Big Tech CEOs like Elon Musk are unwelcome (does not include posts about their companies affecting wide range of people)
6: no advertisement posts unless verified as legitimate and non-exploitative/non-consumerist
7: crypto related posts, unless essential, are disallowed
view the rest of the comments
This is extremely important for them. Netflix's excellent deal for most of its streaming existence was obviously a thorn in the side of many other businesses. Even if streaming services can get you to pay an exorbitant amount of money on an ad-free tier, advertisers are frothing for the chance to advertise to you regardless. They want you to see their ads so badly. And let's not forget all the big tech companies, Netflix included, were riding high during the free money days of 0% interest loans. Those days are over, and the bill is due. Wall Street wants its money. And we are all the ones who have to pay up. Cheap streaming is officially over.
This is why these companies, including Netflix, have all introduced ad tiers. Not only is it a great way for them to juice their revenue streams, but also every other company wants a permanent residence in your brain, and then some. Given the way things have been going since duo-eras of the COVID pandemic and corporate profit-based inflation, they don't even need to collude on prices. All the execs need to do is look at the business press and say, "Hey, they're getting away with increased prices and password sharing crackdowns. We can do the same thing. The pay pigs keep paying!"
I really cannot understand why advertising is such a huge business. Where does all the money spent on advertising really come from?
Is it really unclear? If you had never heard of a product, you would much less likely purchase it. If Coke stopped advertising today, they'd start a very slow but real loss of market to it's competiton, be it Pepsi or whatever. Note that a LOT of advertising is not for you. It's for the corporate buyer at name your favorite restaurant so that they think that they'll get more consumers in the door because they have Coke products, as opposed to some other brand.
I suppose it's not that unclear if you compare the revenue of all other industries combined to the revenue of the advertising industry. The ratio is pretty large and every type of industry buys ads, so it trickles down from everywhere.