Why Ads vs. Subscriptions Is Wrongheaded; Farm-To-Table … – AdExchanger

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The All-In Risk

The natural state for digital media monetization isn’t 100% advertising or all subscriptions, but some balance of both.

The Athletic couldn’t get by on subscriptions alone, and BuzzFeed News died on the ad-only vine. But media companies are now creating sturdier online revenue streams, writes Ben Thompson of Stratechery.

Although The New York Times focuses on subscriptions, that data powers the ads business.

Another example is YouTube, which is an advertising behemoth, of course. But since the 2015 launch of YouTube Red (now YouTube Premium), it’s offered ad-free subscriptions.

Not to mention the elephant in the room – Netflix – which has already flipped the average revenue per user in favor of its cheaper, ad-supported plan.

This trend is a warning sign and an opportunity for media companies that are fully invested in either subscriptions or ads.

Substack, for instance, is laser-focused…

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