Netflix has always been completely ad-free, and proudly so. In fact, during its launch in China in April, CEO Reed Hastings said, "Our focus and expertise is really commercial free." A month later, users in the United States started seeing ads before and after watching a video.
Was Hastings lying? Is Netflix going to become like any other TV network, where you have to sit through commercials while you watch a TV show or movie? Let's sort fact from fiction.
In recent days, some people have been reporting how Netflix has been testing ads that run before and after playing a video. Well, it's true, but not in the way you think. The bad news is that yes, Netflix is thinking about running ads after a video. The good news is that these ads will be trailers for other shows, especially Netflix originals like Orange Is The New Black .
These ads were quietly distributed to a few users, but not to all. Naturally, in the age of social media, he didn't keep quiet for too long. Hell hath no fury like a despised Twitter user :
Very soon, the media was everywhere. Cord Cutters News got the information first, VICE's motherboard looked for confirmation from Netflix, and soon enough, the entire internet was going crazy.
There was so much fuss about this that Netflix CEO Reed Hastings made an uncharacteristic post on Facebook, clarifying the situation:
Netflix has made it pretty clear that these ads won't be powered by third-party advertisers, which means you won't be seeing random ads, even if it's one of the best Super Bowl commercials.
What you will see are trailers and teasers. Yes, trailers, much like what you see when you go to the movies, even though the movies are dying because of you. Are you responsible for the death of cinema? Are you responsible for the death of cinema? The cinema is in its death throes. But why? Shall we blame the shit movie directors? Alternate display options now available? Or are you personally responsible? Let's figure this out. Read more . It makes sense for Netflix to do this, since it's investing heavily in creating original shows like House of Cards , releasing entire seasons on the same day for fans interested in binge-watching. A Brief Guide to Binge Watching [Weird &Wonderful Web] A Brief Guide to Binge Watching [Weird &Wonderful Web] Netflix and Amazon Prime Instant Video have become binge-seeing mainstream mainstays. Before you start binge-watching TV, you need to arm yourself with some important information. This short guide helps. Read more.
“Premium Cable and Streaming Video Channel HBO, Netflix's Rival Netflix Vs Cable Companies - Who is Most Likely to Win? Netflix Vs Cable Companies - Who Is More Likely To Win? Netflix is a growing force in the world of entertainment, but broadcast television and cable television have been around for a long time, and they didn't achieve that success by playing fair. Read More “It also makes sense for Netflix to promote its own shows (it's already heavily advertising them on television and cable TV), which are becoming the main reason for subscribing to the service.”
There is an ongoing discussion as to whether these trailers qualify as advertisements. A common point being raised is that no one believes that trailers included on a DVD or shown in the theater are "ads", so why is Netflix being treated differently?
Helping users discover the right content remains a challenge for Netflix, which was the main thought behind its latest redesign. That's what these trailers will do. But it is biased in favor of Netflix, which is the platform and content provider in this case. After all, Netflix is better off watching the TV shows they made on TV shows someone else made. With that conflict of interest, can you be sure that Netflix is recommending you the best show possible?
In case you don't trust Netflix, just so you know, there are other ways to find the perfect movie to watch right now. How to find the perfect movie to watch right now. How to find the perfect movie to watch right now. so many movies that it is very difficult to separate the wheat from the chaff. Luckily, we're here to help you find the perfect movie to watch right now. Read more.
Netflix has always stressed the importance of being ad-free, but there's a problem with this image. Recently, the CEO of WPP, the world's largest marketing company and an investor in several content producers, noted that while Netflix's ad-free model is powerful, it's not yet profitable. And it has promised $9.5 billion over the next five years to the owners of the content that is currently streaming.
“In those circumstances, Netflix will either have to raise subscription prices, and we know what happened last time, or we have alternative revenue-generating opportunities, one of which will be advertising,” said Sir Martin Sorrell of WPP, referring to to when Netflix lost 800,000 subscribers due to a price increase.
Commenting on an Australian Netflix competitor called Stan, an analyst at PriceWaterhouseCoopers said video advertising is unavoidable on streaming services. Video advertising is projected to grow at "36 percent per year over the next five years," making it too lucrative to ignore.
However, ultimately turning to ads can be a problem, even if it turns out to be a necessity. People Hate Ads Publishers Need To Stop Whining About Adblock Publishers Need To Stop Crying About Adblock Ad blocking seems like a natural choice for any consumer for one simple reason:it's an easy way to get rid of a nuisance. Read More The main reason is that a number of Netflix users come from the ad-free piracy experience.
Redditor samsaBear got the best comment on the Netflix discussion for saying that:“I would just cancel and re-download the stuff I wanted to watch. Netflix has a great model (right now), doing something like this would really screw it up (in my opinion).”
What Makes Netflix Great The Ultimate Netflix Guide:Everything You Ever Wanted To Know About Netflix The Ultimate Netflix Guide:Everything You Ever Wanted To Know About Netflix This guide provides everything you need to know about using Netflix. Whether you're a new subscriber or an established fan of the best streaming service on the market. Read More And this ad-free policy has made it popular, as the company boasts a user base of more than 60 million subscribers, according to its first-quarter 2015 earnings. Go through the Reddit discussion and you'll find several users saying that they would be willing to pay more if it meant the continuation of a completely ad-free service.
The big question is whether Netflix will introduce ads in the future. Most users are clear that they will not pay for it, but what if it was free? As part of the streaming generation The End of Ownership:Netflix, Spotify, and the Streaming Generation The End of Ownership:Netflix, Spotify, and the Streaming Generation Streaming media is convenient, but you're giving up something important:the ownership of digital media. Read More Please let us know your thoughts in the comments below. And in the meantime, calm down..
