It’s a question that is almost as old as Netflix: How long can we get the world’s favorite streaming video service without a commercial?
For years, when Netflix executives were asked if the company could one day run ads like traditional TVs, their response was not some version. However, people who keep tabs on Netflix last month detected a subtle but meaningful change in response from the company’s top financial executive, who said: “Never say never.”
The executive, Spencer Newman, said the company had no plans for advertising, but his comments renewed people’s arguments in entertainment and finance about whether or not Netflix should include commercials.
Along with apps like YouTube and Facebook, Netflix is an unknown leader as the entertainment habits of the world change. But streaming is a tough business, with the era, and the possibility to add, that even the industry’s starters are having trouble replicating their past success.
Netflix is an internet oddball net to earn revenue purely from the monthly fees paid by its customers. Traditional cable TVs, some streaming video services and other companies, including The New York Times, combine subscriptions and advertising.
I would like to consider two questions: First, does it help us when companies that make money from selling things add more paid trading messages, like Amazon, Apple and Uber do? ؟ And second, as the technology services we love from adults to leaders in their field, do the pressures of adult life force them to change in ways we don’t like?
Let me go back and give some context as it is a long question whether Netflix will include commercials coming up again.
Netflix has long been seeking new customers as it pursues its mission of becoming a television world. But for now, subscriber development has been slow. Netflix wants to be great, and so are its investors, who have been anxious enough to eliminate the company’s stock market value of $ 140 billion since November. Netflix said its slow growth could be due to more pressure from challenges, including those from entertainment establishments such as Disney and HBO that are replicating Netflix with their own streaming services.
While companies are briskly promoting sales as soon as they expect it, they are generally looking for new ways to make money – and this is often found in advertising. Amazon just started out as an online mall, but now it’s collecting billions of dollars from companies that pay for it to make sure you see their dog beds or pulse oximeters.
Netflix commercials can be used for cost reductionists. Or it could just pad the company’s profits. I’m not sure we get lower prices when manufacturers pay to make sure we see their products on the shelf of Amazon or Instacart or Walmart.
I’m curious to see what Netflix does, both because I love streaming without commercials and because this is an interesting shift away.
We usually see industry leaders challenging young wiper snipers in the digital age. Except this time, old guard entertainment companies like Disney are taking on a tech company. It doesn’t happen often!
This time, the tech company is the one that is bigger, lucrative, and warns its staff that it’s cheaper. Entertainment grandparents, as well as Amazon and Apple, are the ones who are throwing money at trying to get new customers quickly, sometimes with discounted subscription prices.
And as the media giant copied Netflix, Netflix is now stealing a little from them. Netflix has rejected the TV ratings for years, but now it has, of course. Like old school TVs, some Netflix series are slowly rolling out new episodes, rather than one at a time for binge festivals for which streaming services have become popular.
HBO Max, Disney + and Hulu, as well as some other streaming services, are ranked two from traditional entertainment companies, with one that costs less and the other without commercial breaks and extra monthly fees. It might be up to Netflix to do something similar.
It is unclear how technology companies like Netflix and Facebook can change their products and their relationships with us when they are already near the top of the mountain and difficult to keep up. It’s still a novel for companies and their users, and we don’t know how tech companies work when they’re being challenged by the Davids.
Before we go…
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