Netflix: Ads Are Not Something We’re ContemplatingBy: Chris Crum - January 23, 2014
Netflix says it has no intentions of including ads in or around its content.
The company released its quarterly earnings report on Wednesday. Shortly afterwards, the company held a Google+ Hangout with company execs and analysts. One analyst suggested that investors think Netflix is at the point where people would tolerate pre-roll ads similar to those seen in movie theaters.
When asked if this is something Netflix would consider doing, CEO Reed Hastings said, “We have no plans to go towards advertising-based models. Our brand, at least over the next couple of years, and at this point, really stands for that commercial-free experience that we have where the consumer’s in control of the experience. They get to watch when they want. They get to pause it when they want. They can play it when they want, and watch it how and where they want. So it’s fundamental to that control orientation that we don’t cram advertisements down people’s throats. So I really don’t see that.”
Asked if the company’s contracts would even allow for ads, Hastings said, “You know, at a certain price, anything’s allowable. I’m sure Ted [Content Chief Sarandos] could take take a lot more money, but it’s not something we’re contemplating.”
Sarandos added, “It tends to be a separate set of rights, and to your point, Reed, we’ve got to go to great extremes to give consumers control of the content, you know, going all the way to the extreme of putting the entire season out at one time, so the notion of frustrating them for the first or the last couple of minutes seems a little out of step with that.”
The highlight of the above hangout that has everyone talking is what Hastings said about HBO’s CEO.
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