Competitors Say Netflix Will Inevitably Incorporate Ads

One of the things that has set Netflix apart from a lot of different television networks and streaming services is the fact that it does not make you view ads and the like. This has put it in the league of heavy hitters such as HBO and Showtime, premium cable networks that are quite expensive to get but give you an ad free experience as a result of this fact. Netflix manages to provide high quality content and lots of it along with an ad free experience for the nominal fee of eleven dollars, an amount that pretty much anyone would be able to pay with a fair amount of ease all in all.

However, executives from Netflix’s competitors such as NBC and Hulu have said at a recent Cannes Lions panel that Netflix’s no ad policy is not going to be very long lived because of the fact that the costs of creating content are rising rapidly and there is also the fact that advertising revenue amounts to billions of dollars a year and this is nothing to sneeze at. Netflix would either have to raise its subscription fees to keep the quality of its programming up, incorporate ads to remain on par with the competition or it would just be too tempted by the potential for revenue and would start adding advertisements as a result of this fact.

It’s important to note that while Netflix doesn’t show ads and has consistently claimed that it is never going to do so, there is the fact that it has had product placements and the like, and subtle ads of this nature could very well end up making it into Netflix’s business model at some point in the future.

Netflix may leverage ads say media executives at Cannes Lions

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