5 ms·
I think people writing those articles apply shallow pattern matching and don't understand economics of ads. Have you ever wondered why not every possible busin
by kjksf 8y ago
I think people writing those articles apply shallow pattern matching and don't understand economics of ads.
Have you ever wondered why not every possible business goes for the easy, incremental revenue of advertising?
Why doesn't Netflix just show some pre-roll video add? It's easy money.
When you buy expensive shoes, why don't they pitch you also buying an expensive jacket in nearby store and get an ad commission?
The reason is that ad income is extremely low, ads are not exactly welcomed and degrade user experience.
Netflix makes $120/yr from you. They could make maybe $10/yr more if they were aggressive with ads. But if you cancel Netflix because you're sick of ads, then one year of you not paying for Netflix costs them more than 10 years of ad revenue.
That why ads thrive in a very specific environment: the cost of ad impression must be extremely low and there is no better way of getting money from the user.
Robo taxis, the supposed future ad hell, are the opposite. They'll make lots of money per user ($100+/month) and the cost of ad impression is very high.
If any robo taxi provider will be stupid enough to annoy passenger with ads then they'll loose big time to another provider who isn't.
- notjustanymike 8y ago> If any robo taxi provider will be stupid enough to annoy passenger with ads then they'll loose big time to another provider who isn't. You just described my experience with NY Taxi Cabs vs. Lyft
- cortesoft 8y agoI don't know. I pay $200 a season for NBA League pass, so I can watch my favorite out of market team. My normal watch process is to watch the game after the family goes to bed, and fast forward through a good chunk of the filler (commercial breaks, halftime, free throws, etc) When watching on my computer, they insert un-skippable ad breaks during stoppages, even when watching a replay. That means if I am too slow to skip the timeout break, or happen to slide the slider to a section of the game that is an ad break, I get stuck watching 2 minutes of commercials. Since I am constantly fast forwarding during the game, I end up spending more of my time watching ads than the game. It is awful. If I can't figure out a workaround, this is probably my last year subscribing. My only current solution is to record the game on my DVR (using the same league pass subscription), because then I can fast forward. However, not all the games on TV are HD.... it is pretty awful overall.
- choward 8y ago> When watching on my computer, they insert un-skippable ad breaks during stoppages, even when watching a replay. That is completely absurd. They literally broke fast forward. I would definitely not sign up next year. I bet the commercials are louder than the game too.
- TeMPOraL 8y agoThis is the flip side of "software eating the world". To quote from "Lean Startup", "what can be built out of software can be modified much faster than a physical or mechanical device can". Well, it's true. They couldn't break the hardware fast-forward on your VCR. But they can break the software fast-forward on the web player (especially because they're providing it).
- uw_rob 8y agoNetflix does have ads! And quite a lot of them too. They are just in the form of product placement. Sometimes entire scenes will be for pitching a product. Because of that I refuse to watch any of their original programming.
- robertAngst 8y agoIm convinced smoking is a Netflix ad. Their protagonists are always smoking in their originals. Now you wont be able to unsee.
- ip26 8y agoCould just be a cheap crutch for mood. Can it even be a crime noir without a trenchcoat and a smoldering cigarette?
- Skunkleton 8y ago"Is that a PS Vita? Which games does it have?"
- mehwoot 8y agoWhy doesn't Netflix just show some pre-roll video add? It's easy money. They will, eventually. Or they'll get replaced by a service that does.
- Skunkleton 8y ago> If any robo taxi provider will be stupid enough to annoy passenger with ads then they'll loose big time to another provider who isn't. Have you ever been in a cab?
- voltagex_ 8y agoSaw ads when I was in New York, but I've never seen a cab with ads (inside) in Australia. You're lucky if there's functioning interior lights, the first time the ad screen broke it'd never be repaired. The outside of the cab is a billboard, yeah.
- Skunkleton 8y agoMost of the cabs in the states that I have been in are plastered with ads. YMMV.
- TeMPOraL 8y agoI'll add my experience from Shenzhen, China. Cabs have screens on the back of passenger seats, so when you sit in the back, you get to "enjoy" them. The future is coming.
- majormajor 8y agoI've seen prerolls on Amazon, and heard about Netflix testing them. Today it's only house ads, but it's easy to see that expanding one day if financials start going the wrong direction. I'm very skeptical of your "$10/year" figure for how much they could make. I can't think of any mixed-model services like Spotify or Hulu that are that low in price delta between ad-supported and ad-free.