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> Advertisings entire purpose is to increase the volume sold, which lowers the price. Problem is, if everybody does advertising to compete for market share, th
by danmaz74 8y ago
> Advertisings entire purpose is to increase the volume sold, which lowers the price.
Problem is, if everybody does advertising to compete for market share, the prices go up globally, because the entire ads industry consumes resources.
But for now we haven't figured out any better model. We might in the future, or we might not.
- isostatic 8y agoNetflix seem to be doing very well without adverts How much does a website typically earn from my visit (with adblock etc)? I haven't had a site with adverts since 2000 so no idea Sky in the UK gets something like 80% of revenue from subscription, but still have adverts on top of that, trying to extract every last penny. Thats why I won't subscribe -- plenty of other choices for entertainment. If your time is worth say £15 an hour, having 2 of you watching a 40 minute program and 20 minutes of adverts costs you £10. Given the income ratio is 8:1 revenue, your £24 subscription brings in £3 of advertising money to sky per month, if you watch 1 hour a day, that's 10 hours a month, or your time being worth 30p an hour. No thanks.
- SilasX 8y agoNetflix can also restrict access to paying users. Can every site out there do the same (while maintaining a viable business)?
- isostatic 8y agoHow much does a site earn from an average visit?
- danmaz74 8y agoBut Netflix advertises itself a lot. They still factor the "ads industry" costs in (which practically everybody does in competitive markets).
- tachion 8y agoDon't know about very well, but I do know about the ads and if you're in any UK major city, you should've seen a ton of Netflix ads, recently on the 'Lost in space' a series of wooden block attractiveness that I've personally attempted to watch only because I've seen it on the ads.