The surge in online streaming consumption during the pandemic has led to a debate about minimum wage in the streaming industry. With people confined to their homes, streaming services such as Netflix, Hulu, and Amazon Prime have seen an increase in subscriptions and revenue. However, workers in the industry have been struggling with low wages, leading to questions about the justifiability of the large salaries of the company CEOs. The minimum wage debate in the streaming industry was ongoing before the pandemic, and the pandemic has only worsened the situation. The US federal minimum wage for 2020 is $7.25, which is significantly low, especially considering the cost of living.
Record-Breaking Streaming Consumption Leads to Minimum Wage Debate
The year 2020 turned out to be an unexpected year for everyone. The pandemic caused a halt in the day-to-day workings of the world and brought many changes with it. Lockdowns became a necessary precaution, and people were confined to their homes, leading to a subsequent surge in online streaming consumption. People sought refuge in entertainment, and streaming services became a go-to solution. However, this surge in streaming consumption led to minimum wage debates, as companies struggled to meet the increased demand.
Streaming services, such as Netflix, Hulu, and Amazon Prime, were the go-to solutions for people to pass the time while being confined within their homes. With the increasing consumption, the number of new subscriptions increased, along with the revenue being generated by the streaming services.
As the companies saw profits soaring high, the minimum wage debate began to amplify. The yearly wage per hour for people working within the streaming companies, working long hours to meet the never-ending demands, was not up to par in comparison to the profits being earned. People began to question whether the large salaries of the CEO’s of these companies were justified, when the employees maintaining the service were not fully appreciated.
The minimum wage debate in the streaming industry began months before the pandemic. The struggles of people working in the streaming service industry came into the limelight, with reports the bigwigs of the industry drawing large salaries while the workers struggled with minimum pay. The pandemic and the subsequent surge in streaming only worsened the situation.
The US federal minimum wage for 2020 is $7.25, which is a significantly low wage, especially considering the cost of living. Research conducted by MIT living wage calculator, a minimum wage of $15/Hour is necessary for a single adult with no child, residing in the continental US, to maintain living expenses.
The streaming industry is a billion-dollar industry, with revenue exceeding $37 billion in 2019, and with the pandemic restrictions, it’s only expected to soar. The workers in the industry are an essential part of the production and maintenance of the services that the company provides. The stream of profits is a reflection of their hard work, and the industry should ensure that they receive their fair share.
Frequently Asked Questions (FAQs)
Q: What is the minimum wage debate in streaming services?
A: The minimum wage debate is the discussion surrounding the low wages that streaming service employees receive, despite the billion-dollar profit generation of the companies.
Q: What is the US federal minimum wage?
A: The US federal minimum wage for 2020 is $7.25.
Q: Is the streaming industry profitable?
A: The streaming industry is a billion-dollar industry; it generated over 37 billion dollars in 2019.
Q: Why is the minimum wage a concern in the streaming industry?
A: The minimum wage is a concern in the streaming industry because the industry has high revenues, while the workers are struggling to meet their living expenses with the minimum wage.
Q: Should the potential revenue of the company factor in deciding the worker’s salary?
A: Yes, the revenues generated by the company should be considered while deciding the worker’s salary as they contribute to the company’s growth and success.