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Why doesn’t Netflix explore adding ads to their viewing experience? Yes, I wouldn’t like ads, but cable’s revenue model is subscription plus ads, so I’m curiou

Why doesn’t Netflix explore adding ads to their viewing experience? Yes, I wouldn’t like ads, but cable’s revenue model is subscription plus ads, so I’m curious why Netflix thinks their optimal revenue model would be any different?

ghaff 5y ago
Not in general the premium channels. What percentage of Netflix users would drop them if they started running adds? 25%? 50%?
- city41 5y ago
  They could add an ad supported tier that is separate from the non-ad tiers.
- listenallyall 5y ago
  More like 5% or less. People are used to commercials. I like having short 30-60 second breaks when watching Amazon Prime content, gives me a chance to check my phone or get a drink. Sure, if they went to multiple 4 minute breaks per hour like broadcast tv, that would be too much. But short breaks will not turn off many subscribers. HN has a small subset of individuals who are extremely vocal about being ad-free... like many things, they may be vocal but represent a very small group.
vultour 5y ago
The moment I see an ad on Netflix is the moment I unsubscribe. I’d rather spend time digging through sketchy torrents than watch ads in something I paid for.
- quadrifoliate 5y ago
  Possibly even more specific, the moment I see an ad-supported tier on Netflix is the moment I binge everything I like and then leave. The total absence of ads in any of their tiers has alone been a good reason for me to support and watch them.
- fairity 5y ago
  Cable tv makes $70 per viewer per year. Assuming the same for Netflix, they’d need a third or more of their users to churn to be non accretive. If they create a no-ad tier that’s slightly more expensive, I doubt churn would be that high.
weberer 5y ago
That model is exactly what "killed" Hulu back when it was their only real competitor.
- lowbloodsugar 5y ago
  I once paid for Hulu and my reward was less ads. WTF. Immediate unsubscribe. Will never pay/watch Hulu ever again.
npteljes 5y ago
Latest word is that they think that the service is worth more without ads, than with ads. https://techcrunch.com/2020/01/22/netflix-is-still-saying-no-to-ads/ https://techcrunch.com/2020/01/22/netflix-is-still-saying-no...

ghaff 5y ago

Not in general the premium channels. What percentage of Netflix users would drop them if they started running adds? 25%? 50%?

city41 5y ago
They could add an ad supported tier that is separate from the non-ad tiers.
listenallyall 5y ago
More like 5% or less. People are used to commercials. I like having short 30-60 second breaks when watching Amazon Prime content, gives me a chance to check my phone or get a drink. Sure, if they went to multiple 4 minute breaks per hour like broadcast tv, that would be too much. But short breaks will not turn off many subscribers. HN has a small subset of individuals who are extremely vocal about being ad-free... like many things, they may be vocal but represent a very small group.

vultour 5y ago

The moment I see an ad on Netflix is the moment I unsubscribe. I’d rather spend time digging through sketchy torrents than watch ads in something I paid for.

quadrifoliate 5y ago
Possibly even more specific, the moment I see an ad-supported tier on Netflix is the moment I binge everything I like and then leave. The total absence of ads in any of their tiers has alone been a good reason for me to support and watch them.
fairity 5y ago
Cable tv makes $70 per viewer per year. Assuming the same for Netflix, they’d need a third or more of their users to churn to be non accretive. If they create a no-ad tier that’s slightly more expensive, I doubt churn would be that high.

weberer 5y ago

That model is exactly what "killed" Hulu back when it was their only real competitor.

lowbloodsugar 5y ago
I once paid for Hulu and my reward was less ads. WTF. Immediate unsubscribe. Will never pay/watch Hulu ever again.

npteljes 5y ago

Latest word is that they think that the service is worth more without ads, than with ads. https://techcrunch.com/2020/01/22/netflix-is-still-saying-no-to-ads/ https://techcrunch.com/2020/01/22/netflix-is-still-saying-no...