The presence of advertisements within Paramount Plus’s streaming service stems primarily from the desire to offer a tiered subscription model. This approach provides consumers with a choice between a lower-priced plan that includes commercial breaks and a more expensive, ad-free option. The inclusion of commercials enables the company to generate additional revenue streams, partially offsetting the costs associated with content acquisition, production, and platform maintenance. This revenue model is prevalent across many streaming platforms.
The strategic decision to implement a dual-tier system offers multiple benefits. A lower-priced subscription with limited advertisements makes the service more accessible to a broader audience, particularly those sensitive to price points. The additional revenue from advertising is crucial for funding original programming, acquiring licensing rights to existing content, and investing in technological advancements to improve the user experience. Historically, advertising has been a cornerstone of media financing, supporting television broadcasts and now, increasingly, streaming services.