The Streaming Disruption

Netflix began streaming in 2007. By the 2020s, streaming had fundamentally altered the economics. Theater attendance declined. The theatrical window — the period of exclusive theater showings before home release — shrank from months to weeks or disappeared entirely.

Streaming services spend tens of billions annually on content but measure success through subscriber retention rather than individual viewership. This incentivizes volume over individual quality and favors content that keeps people scrolling but not necessarily watching.