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All roads lead to cable

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Why This Matters

The rise of streaming, once seen as a disruptive alternative to cable, is increasingly starting to mimic the very model it upended—bundling, ads, and fragmented content spread across multiple subscriptions. This matters because it signals that the promise of cheaper, simpler entertainment access is fading, leaving consumers paying more across services just to get what cable once offered in one package.

Key Takeaways
Worth a Look

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is a reporter focusing on film, TV, and pop culture. Before The Verge, he wrote about comic books, labor, race, and more at io9 and Gizmodo for almost five years.

This is The Stepback, a weekly newsletter breaking down one essential story from the tech world. For more on streaming platforms, FAST channels, and the future of entertainment, follow Charles Pulliam-Moore. The Stepback arrives in our subscribers’ inboxes at 8AM ET. Opt in for The Stepback here.

How it started

Before Netflix fully committed to becoming a streaming service and leaving DVDs behind, the company experimented with the idea of giving its subscribers a physical box that could access high-resolution digital copies of movies. Films would have been downloaded to the box in the evening and become available to users the next day. But Netflix changed course around 2006 once it saw people were flocking to watch grainy viral videos on YouTube. Though Netflix had already been making waves by disrupting the movie rental business, pivoting to streaming turned the company into a powerhouse that posed a threat to traditional cable services.

People loved being able to instantly access large catalogs of movies from their computers without having to sign up for expensive cable plans. Once the company got into original series in 2012, its binge model helped generate buzz and drive new sign-ups. As Netflix’s user base continued to grow in those early years, other companies, like Amazon, Disney, and NBC, realized there was money to be made by launching (or contributing to) streaming services of their own. And while cable didn’t completely disappear as streaming took off, the number of people subscribed to cable plans began (and has continued) to drop over the past decade.

How it’s going

Streaming is now the most common way that people consume films and television, and many people subscribe to multiple services in order to be able to access all of the things they want to watch. The proliferation of streaming services has led to an explosion of media, but the streaming market’s maturation has also made it much more difficult for companies to find and keep new subscribers.

Platforms have tried to get ahead of that issue and stay on top of their finances with countless price hikes that have made it much more expensive to keep up with shows compared to when streamers first hit the scene. In hopes of courting more price-sensitive customers, many companies have introduced ad-supported tiers to their paid services. But some have also launched free ad-supported television (FAST) services that look and feel a lot like traditional cable.

Unlike regular streamers where constant ads and endless choices have become an annoyance, FAST services like Tubi, Roku, and Pluto TV keep things relatively simple. In exchange for watching a few commercials, users can browse through entertainment libraries or choose to focus on channels that are dedicated to specific series. When you look at the way that most FAST services present their channels in long lists, it’s easy to get the sense that they’ve been intentionally designed to mimic old cable interfaces. That might speak to entertainment executives beginning to think that icon-dense carousels aren’t necessarily the best way to show off a streamer’s offerings. It could also be a sign that viewers have grown weary of the algorithms streamers use to suggest what content to watch. But it also feels like as the streaming wars have carried on, newer companies realized that the old guard got a few things right.

What happens next

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