This is a question that is almost as old as Netflix: how long can we get the world’s favorite streaming video service without ads?
Over the years, when Netflix executives have been asked if the company could one day run ads like conventional TVs, they have no answer. However, those who keep a close eye on Netflix have noticed a subtle but meaningful change in response to the company’s top finance executive last month, who said: “Never say no.”
Executive, Spencer Newman says the company has no plans to advertise, but his comments have renewed arguments from entertainment and money people about whether Netflix will add ads or not.
Along with apps like YouTube and Facebook, Netflix is an unquestionable leader in changing leisure habits around the world. But streaming is a difficult business, the duration, and the possibility of adding advertising shows that even industry stars find it difficult to replicate its past success.
Netflix is an internet double for net income from the monthly fees paid by its customers. Other companies, including conventional cable TV, some streaming video services, and The New York Times, combine subscriptions and advertising.
I want us to consider two questions: First, does it help us when companies that make money selling products add more paid commercial messages like Amazon, Apple and Uber? And second, will the pressures of adult life force them to change in a way that we don’t like, from technology services that we like to mature new kids?
Let me go back and give you some context on why the long-standing question of whether Netflix will add ads is coming up again.
Netflix has long been looking for new customers as it pursues its goal of becoming a TV for the world. But for now, the pace of customer growth is slowing. Netflix wants to be bigger, and so are its investors, who are worried enough to remove the company’s মার্ 140 billion stock market value from November. Netflix says its slow growth may be due to further pressure from challengers, including entertainment companies like Disney and HBO who are copying Netflix with their own streaming services.
When companies have trouble raising sales as fast as they expect, they usually look for new ways to make money – and this is often found in advertising. Amazon only started as an online mall, but now it collects billions of dollars a year from companies that provide it to make sure you see their dog bed or pulse oximeter.
Including ads can keep prices low for Netflix customers. Or it could just be the company’s profit pad. I’m not sure we pay less when manufacturers pay to make sure their products are featured on the shelves of Amazon or Instacart or Walmart.
I’m curious to see what Netflix does, because I like streaming without ads and because it’s the opposite of an interesting role.
We usually see young whippersnappers challenging industry leaders in the digital age. Apart from this time, old guard entertainment companies like Disney are taking on a technology company. This is not very one!
This time around, the tech company is big, profitable and warns its employees to be more frugal. Entertainment grandparents, plus Amazon and Apple, are throwing money at trying to quickly grab new customers, sometimes with a cut-rate price on subscriptions.
And just as the media giants copied Netflix, now Netflix is stealing something from them. Netflix has been avoiding TV ratings for years, but now they are there, sort of. Like the old school TV, some Netflix series slowly releases new episodes, not all at once for the Bing Fests that became known for the streaming service.
HBO Max, Disney + and Hulu, as well as some other streaming services of conventional entertainment companies have two levels, one with low advertising and the other without commercial breaks and high monthly fees. This may entice Netflix to do something similar.
It is not clear how technology companies like Netflix and Facebook can change their products and their relationship with us when they are already near the top of the mountain and it is difficult to continue climbing. It’s still fancy for companies and their users, and we don’t know how technology companies will work when they’re being challenged by Davids Goliath.
Before we leave.
Internet tracking, same but different: My colleague Brian X. Chen and Die Wakabayashi explain the changes Apple and Google have made to online data collection, and the variety of Internet tracking that could strengthen the power of some technological titans.
Why are Russian hackers fabricating claims that Ukraine has surrendered? Rarely is anyone being fooled, but my colleague Kate Conger says Russia-backed hackers are trying to undermine trust in Ukrainian media outlets and organizations.
Related, a great visual Parallel digital world From Norway’s NRK Broadcasting Corporation: The cities of Kharkiv, Ukraine, and Belgorod, Russia, are not too far geographically. But on TikTok, fighting on the Ukrainian side of the border is always present, while users on the Russian side are mostly foolish.
A new technology is coming to Dudad Baseball. I predict that some players will drive fans crazy with on-body messaging devices and earpieces to communicate on the field.
Pure dumb fun in this Twitter thread of people Sharing their controversial opinions about foodAmazing taste with banana in pizza (?!?!).
We want to hear from you. Let us know what you think of this newsletter and what you would like us to explore You can contact us firstname.lastname@example.org.
If you haven’t already received this newsletter in your inbox, Sign up here. You can also read Past on take column.