koberulz

This is false. Firstly, because people don't subscribe to everything forever. But even in some Netflix utopia where everyone has a Netflix subscription, and they keep it forever, then what? Now you can't make any more money, you're making the maximum amount of money your business model can make. But you can keep people subscribed to your service by continuing to add new things, while also making extra money from those who would like to own physical copies.

Subscriptions detach income from titles, meaning all the service needs to do is exist and have things on it. There's no budget to actually create anything special. Physical offers a way to reconnect those, making something that is more expensive and in return making more money.

The ad-based plans everyone is introducing run on the same logic. Subscriptions aren't sustainable.