Netflix is an american media-service provider founded in 1997 by Reed Hastings. It is a producer and distributor of both movies and television series. It provides a variety of ‘Netflix originals’ with great content. It has almost 169 million paid users and different streaming plans to offer. Apart from this, the ‘no ads’ policy has been a main factor which satisfy the users.
Why no to ads?
The company stated to their shareholders that they are advertising free just like HBO. Good content and viewers satisfaction should be a priority rather than competing for ad revenue. Reaching to the audience with great content is the main agenda. Netflix is pushing itself to become a brand with a great strategy. ‘No ads coming to Netflix’ said CEO Reed Hastings several times in recent years. According to many industry experts, netflix staying ad-free would surely affect the growth. And it’s just a matter of time when they would need to boost its revenue through ad-business. But for now, the company has no intention on bringing ads which is keeping the users engaged and happy with the service.
Is there any possibility of an ad-supported subscription plan?
In order to increase the growth, the company must introduce ad-supported subscription plans. For example, Hulu, which provides both ad-supported ($5.99/ month) and ad-free plans ($11.99/month). It brings in more revenue by ad-supported plans. If netflix bring ads in the streaming service, it could face a dropping in the subscriber number. A survey was conducted by Hub entertainment research. The result of the survey shows that the ad-supported plan would represent a loss of almost 14 million subscribers in the US. So we can clearly imagine how Indian population can affect the revenue. But for the mean time, users can enjoy the ad-free services provided by netflix.
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