Sling TV recently announced its first quarter 2019 earnings including that they now have 2.424 million subscribers. Yet the question of how Sling TV can charge just $25 a month when many services are over $40 a month keeps coming up. Now we may have a good idea of how Sling TV is doing this.
According to Sling TV, their first quarter of 2019 ad revenue has doubled since the same time in 2018. Many services have talked about how ads will keep costs down, but Sling TV is making it a reality.
Sling TV is raising its ad revenue by improving its addressable ads. This means an ad you see will be different from the ads I see. Sling TV is using a similar strategy to the ad strategy places like Google use. By offering an addressable ad system it allows them to keep the cost down.
It is very unlikely that Sling TV will forever be able to keep its price at $25. All prices go up over time. The good news is Sling TV’s focus on ad revenue has helped them keep the cost of TV low enough that they are able to be far less expensive than other companies.
Other companies are trying to do the same. For now, though, Sling TV seems to be the most successful likely because they are the company with the most live TV streaming subscribers.
Do ads like this bother you? Or are you happy to get targeted ads if it keeps your costs down? Leave us a comment and let us know.
Source: Multichannel News
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