Are You Ready for Netflix Ads?
Is this the end of bingewatch and ad-free content ?
Rumors surrounding Netflix ads have been circulating for a while now and looks like this might be happening in the future. CEO Reed Hastings denies these reports and promises to keep the service ad-free. However, some experts believe that when competitors like Disney+ land in the market, the company will have to rely on a new strategy to survive.
Netflix Ads | What are the Experts saying about it?
Not so long ago reports started surfacing that the Netflix binge-watch experience might come to an end and now the rumors regarding Netflix Ads are the talk of the town. Why is the online streaming giant opting for these strategies? Well, it’s not doing this at the moment but some say that competition from Disney+, CBS All Access, HBO Max and DCU will eventually lead to some version of Netflix advertisement.
At the end of the day, it’s a business and it will need to earn to survive. Be it Netflix Ads or a restricted binge-watching experience, sooner or later Hastings will probably be opting for such strategies.
Brian Frons (former president of ABC Daytime) says the company needs to increase its revenue:
Netflix needs a way to grow its U.S. revenue in ways beyond just raising the subscription price. One wonders why they would not add an ad-supported model.
At the moment there are two plans that Hastings can move forward with. One is a free-subscription and Netflix Ads supported sub. The second option is based on models already in practice. For example, Hulu is offering a $5.99 ad-supported subscription, which brings in more revenue than its $11.99 ad-free version.
Kevin Herrera (CEO TheMachine) thinks Netflix Ads are inevitable.
My best bet is they’re going to do a version that’s completely free and ad-supported.
What is Netflix’s stance on the Matter?
The company has always denied the application of Netflix Ads and want to keep the subscription completely ad-free. They believe in a differentiation strategy and an expected $5 billion in revenue in the second quarter means the ad-free online streaming service is not going to use the option any time soon. Reed has this to say about it:
No ads coming to Netflix. Period. Really having a great experience — no advertisements or chopping up all of the content — vastly outweigh’s any monetary benefit YouTube and Hulu enjoy from ads.
You can all sit back, relax and binge-watch your favorite Netflix TV-shows for now. Dankanator will keep you updated on the subject.