With Netflix new ad-free standard plan at $20, streaming's tipping point into old TV is getting closer

To learn more about the CNBC CFO Council, visit cnbccouncils.com/cfo

Streaming companies are discovering that their most valuable customers may not be the ones paying the most. Instead, it’s increasingly the viewers who watch the most.

The change is being driven by a move away from a subscription-only model to one that combines subscription fees with advertising. Because ads are sold based on viewership, the more time a subscriber spends watching, the more revenue that viewer generates.

In March, Netflix

raised prices for the second time in just over a year, pushing its standard ad-free plan to around $20 a month, versus an ad-supported tier at $9, signaling that how much a subscriber watches may matter as much if not more than what they pay upfront.