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It strikes me that supporting ads has a huge impact on the technical infrastructure. It complicates server deployment and client UI. And how would you tailor
by w10-1 4y ago
It strikes me that supporting ads has a huge impact on the technical infrastructure. It complicates server deployment and client UI. And how would you tailor markets to regions? subscriber preferences? coveted spots (just before that cliff-hanger...)? Oy
I'd be interested in ballpark resource estimates for added complexity and staffing for operations and for the ad business units.
Most importantly, is most of the cost up-front in infrastructure development, or do the ad business units themselves eat so much they don't make sense below a certain level of adoption?
i.e.,
- How many ad-supported users does Netflix need for the ad tier to justify its fixed and operational costs?
- What about cannibalizing the higher tiers? Can ads end up being a net revenue loss even if they pay for themselves?
- If it is complicated and hard, and they get it right, can it be a moat for them?
Way too many questions.