"Online video-advertising rates continue to fall. Prices for ads on top-tier sites last year were down by 10% to 15% from 2011 […] Consequently, the amount of online space available for ads—the inventory—is exploding. Of the 39 billion content videos viewed on the Web in December, about 23% carried video ads, up from just 14% a year earlier"
If Media’s Future Is Online, Where Are the Profits? - WSJ.com
Take these two trends and tell me where you think this is headed.
I think subscription model’s are taking over digital entertainment. While the last decade saw us unwilling to pay for our entertainment medium and accept anything for it. We are now realizing the benefits of paying a little here and there for a good amount of quality. While most are still holding out for free ad-supported services, those numbers are dwindling year by year while netflix and paying spotify members go up.