Netflix can achieve a million dollars a year from advertising

The lack of ads is one of the most important advantages of Netflix, but questions remain deliberating about whether the company would avoid the ads forever. The company has raised the prices of subscriptions several times in recent years, although they are still in the Affordable relatively, it complained about some users that the prices are too high.

In the meantime, appeared a new report claims that company is Netflix can achieve revenues worth a billion dollars a year by adding ads.

Business model Netflix is currently limited to the subscriptions paid monthly only, and you issue the programmes of the original batch one is complete, while some competing services such as Hulu plans subscription low-cost with advertising and believe it rings intermittently, such as traditional television.

Although consumers don’t get annoyed by having commercial advertising, except that a large number indicates that the lack of advertising, it is one of the most attractive parts of sex, while we already know that the company is considering several months ago the idea of adding ads, met a range of representatives of ad agencies who discussed with the executives at Netflix the importance of introducing ads to the service, and tested already ads before after watching the episodes.

Levels of about $ 10.3 million of debt, and billions more in obligations spending on content. And according to my Instinet, the company can pay its obligations through the addition of ads that will give him high returns, while expected if introduced Netflix ads, you will be in a similar style service Hulu.

Source: variety

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