Streaming-service providers are proving that it’s possible to create and grow successful enterprises around a business model that includes little or no revenue from commercials. The trend is now changing to one based on a subscription model rather than on ad revenue. In 10 years, even traditional cable providers are likely to completely become subscription services, allowing unbundling and a tiered-fee structure based on the type and number of channels a consumer chooses.
Further, a hybrid model may be available 10 years from now, in which a subscription service is combined with smart advertising. In this scenario, rather than having three-minute commercial spots during a 30-minute television program, TV programming may change to one where a consumer will be required to have a monthly subscription, so that they cen view targeted banner ads. This type of advertising already occurs on the internet, and the amount of data television companies collect allows them to do much the same.
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