And this guy, this industry insider said, do you realize that hulu makes the overwhelming majority of its money, like 80% of it money, off the 499 subscribers who will watch the ads, pay $4.99 a month, and that s where they get all their money? it seems that that s a reality that obviously works for peacock. it s also a reality, though, that i think is probably facing netflix in the future, right? absolutely. look, reed hastings, the ceo of netflix, thought for a long time, the subscriber-only, no advertising was a better model partially because it was simpler, partially he thought it was about the experience. but when you think about the revenue possibilities longer term, you look at somebody paying $4.99, $7.99, plus the advertising, it makes up even more. they re making more off that customer, the advertising, plus then they are the person who s paying the full amount, the $11,
$12, $13 for hulu you were talking about. there is potentially more money to be made that way. we ll see if netflix does that it way. speaking of streaming, let s talk act spotify. the obamas have been knocking heads over the past couple years, not about joe rogan but about money. spotify wanted it, the obamas dchblt. now they re leaving spotify and shopping for a new deal with tens of millions of dollars. this could be its own podcast original, a limited series on the drama between spotify and the obamas. spotify making a deal originally with them worth tens of millions of dollars. frustration on both sides. spotify was upset throughout that there weren t more podcasts being produced by the obamas with the obamas in them, not just with their name on them. and the obamas frustrated it was
Netflix, but we heard the joke coming in about, yeah, television you know, content with commercials is called television. i always we go through this churning and i always go back to the michael wolff book that i guess it came out about ten years ago. television is the new television. then he was talking about how in the late 90s it was aol that was going to take over everybody. at the end of the day, we re seeing it again. it was going to be streaming platforms. at the end of the day, those ads, i mean, it makes sense for wall street. you talked about this yesterday. but as an industry insider, talk about hulu. and the thing you don t understand, joe, is you don t want to see commercials so you probably have the $11, $12 hulu commercial free. i go yep.