1. Create a distribution platform. Users pay $14 a month to stream all content. Everyone is happy.
2. Once successful, start creating exclusive content.
3. Content creators on your platform start their own platforms and take content off of yours.
4. Now users are paying $14 for 6 different distribution/content platforms. Might as well just call them "channels". This is no better than cable.
Also you really don't need to subscribe to all of them. Who needs that much content? I can't even keep up with my Netflix or YouTube queue, let alone the others. I have Amazon Prime, but never use it. HBO for a couple shows, but could subscribe only during their seasons.
With streaming, we can avoid this because it's possible offer packages:
Price X includes ads
Price X+Y has no ads
As long as Y is something enough consumers are willing to pay, you can always price yourself out of the ad-watching category by paying more. The trouble with out conventional "freebie" internet services as we know them is there aren't enough people willing to pay the additional Y.
It is just a small step from this kind of self-promotion to showing ads for stuff on Amazon. After all, they have my purchasing and article browsing profile and could easily try to find articles that I might be inclined to buy. I would put some bucks on the line betting that we will see something like that in the next 5 years.
6. Users begin to drop from platforms.
7. Platforms realize the masses are fatigued from dealing with 5-10 different apps, multiple monthly payments, queues, sifting through tons of mediocre exclusive content, etc. They decide to create a God Platform that manages multiple "channels" through a single subscription.
8. Users love it, flocking to the new God Platform.
9. ?
10. The new model ensures that content producers compete at the contract negotiation level and don't manifest in user-visible price differences so the price of content gradually shifts away from the cost of production and up to customers' willingness to pay since all content producers are singular in the intent to maximize total user revenue.
11. Access to this God Platform is pretty much ubiquitous and ISPs try to differentiate themselves by bundling discounted subscriptions as part of their internet package. People love it and gradually move over.
12. Once every ISP offers the service the discount evaporates as it's no longer a differentiating feature.
13. ?
Content creators can easily create distribution platforms of their own. So if you're Disney? Well, why deal with Netflix?
Netflix et al are then in a bind, in that they eventually have less and less content, so they start making content.
It's kind of a vicious circle.
Sure it's annoying to view, but it's out there! (Note, it's annoying, not necessarily expensive! You can subscribe to a different service each month.)