It’s a question almost as old as Netflix: How long can we get the world’s favorite streaming video service without any ads?
Over the years, when Netflix executives were asked if the company could one day run ads like a traditional TV, their answer was a smaller version. However, those who keep a close eye on Netflix saw a subtle but significant change in response last month from the company’s top finance executive, who said: “Never say no.”
Executive Spencer Newman said the company had no plans to advertise, but his comments sparked new arguments from people in the entertainment and financial sector about whether Netflix would add ads.
With apps like YouTube and Facebook, Netflix is an undisputed leader as the world’s leisure habits change. But streaming is a tough business, the duration, and the possibility of adding commercials show that even an industry star is finding it difficult to replicate his past success.
Netflix is an internet oddball to get the full revenue from the monthly fees paid by its customers. Connects to traditional cable TV, some streaming video services and other companies, including The New York Times, subscriptions and advertisements.
I want us to consider two questions: First, does it help us when companies like Amazon, Apple and Uber, which make money from selling products, add more paid commercial messages? And second, the technology services that we love from new kids to their field leaders, will the pressures of adult life force them to change the way we don’t like them?
Let me move on to why the long-running question of whether Netflix Commercial will add up is coming up again.
Netflix has long been looking for new customers as it pursued its mission of becoming a TV for the world. But at present, consumer growth is slowing. Netflix wants to get bigger, and so do its investors, who have been worried enough to destroy કંપની 140 billion of the company’s stock since November. Netflix says its slow growth may be due to increased pressure from challenges, including entertainment organizations like Disney and HBO that are mimicking Netflix with their own streaming services.
When companies are having trouble increasing sales as quickly as they hope, they are usually looking for new ways to make money – and this is often seen in advertising. Amazon started out as just an online mall, but now it collects billions of dollars every year from companies that pay you to make sure you see their dog bed or pulse oximeter.
With the commercial Netflix can keep the price low for subscribers. Or it could increase a company’s profits. I’m not sure we get lower prices when manufacturers pay to make sure we can see their products clearly on Amazon or InstaCart or on Walmart shelves.
I’m excited to see what Netflix does, because I like streaming without commercials and because this is an interesting role reversal.
We usually see young whippersnappers challenging industry leaders in the digital age. Other than this time, old guard entertainment companies like Disney are facing tech company. This does not happen often!
This time around, the tech company is bigger, more profitable, and warns its staff to be more frugal. Entertainment grandparents, plus Amazon and Apple, throw money to try to get new customers quickly, sometimes with cut-rate prices on subscriptions.
And just like the media giants imitated Netflix, now Netflix is stealing a bit from them. Netflix has been away from TV ratings for years, but now it has it. Like the old school TVs, some Netflix series are slowly releasing new episodes, along with the simultaneous streaming service for which it became known.
HBO Max, Disney + and Hulu, as well as some other streaming services from traditional entertainment companies, have two levels, one with low advertising and the other with no commercial breaks and high monthly fees. It may entice Netflix to do something like this.
It is not clear how tech companies like Netflix and Facebook can change their products and their relationship with us when they are already near the top of a mountain and difficult to climb. This is still a novelty for companies and their users, and we don’t know how Goliaths will work when tech companies are being challenged by Davids.
Before we go
Internet tracking, similar but different: My colleagues Brian X. Chen and Dye Wakabayashi explain the changes Apple and Google have made to online data collection and ways to further strengthen the power of some of the tech titans of various types of Internet tracking.
Why are Russian hackers fabricating claims that Ukraine has surrendered? Hardly anyone is fooled, but my colleague Kate Conger says Russia-backed hackers could try to undermine trust in Ukrainian media outlets and organizations.
Related, a great scene Parallel digital world From Norway’s NRK Broadcasting Company: The cities of Kharkiv, Ukraine and Belgorod, Russia are not very far geographically. But on TikTok, war is always present on the Ukrainian side of the border, while users on the Russian side seem mostly stupid.
A new tech doodle is coming to baseballI guess fans will be crazy about on-body messaging devices and earpieces for some players to communicate on the field.
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