Netflix recently started showing trailers for its original shows on the streaming service. Still in the testing phase, the ads are displayed at the beginning and end of a show, and have been encountered by a limited number of users in specific regions. This recent development by the streaming service has raised the possibility that it might soon include third-party ads in its service as well.
Netflix says no third-party ads
In response, a number of Netflix subscribers voiced their opinion regarding the inclusion of ads. Most of them have threatened to end their subscription if Netflix moves forward with third-party ads. Philip Venero, a Netflix subscriber, tweeted, “I will cancel my membership if I see ads.” Moreover, another user indicated that by featuring ads, the U.S. Streaming service will become very similar to its competitor Hulu Plus.
Voss Capital is betting on a housing market boom
The Voss Value Fund was up 4.09% net for the second quarter, while the Voss Value Offshore Fund was up 3.93%. The Russell 2000 returned 25.42%, the Russell 2000 Value returned 18.24%, and the S&P 500 gained 20.54%. In July, the funds did much better with a return of 15.25% for the Voss Value Fund Read More
However, CEO Reed Hastings claimed that ads will never be displayed on the streaming service. In addition, he pointed out that the ads currently being shown on the service are just relevant trailers of other Netflix shows that people might want to watch.
According to Jason Koebler of MotherBoard, Netflix’s attempt to promote its own shows resembles the HBO model. Presently, the company is featuring trailers for shows such as Orange Is The New Black, House of Cards, etc. Koebler further added that Netflix has no intention of including ads for products and services from the third-parties. This is in line with the comments made by Netflix’s spokesperson, who told Gizmodo that the company is “not planning to test or implement third-party advertising on the Netflix service.” The representative also noted that the ads are just a part of the potential upgrades that the company tests every year.
Featuring third-party ads could be beneficial for Netflix
That said, considering the company’s robust recommendation software, featuring third-party ads could be really beneficial for Netflix. Moreover, some analysts suggest that the streaming service needs to include ads to keep maximizing profits. Moreover, from the point of view of competition, its rivals have already started offering third-party ads.
However, taking into account the uproar that the recent rumor regarding the addition of ads has caused, it seems highly unlikely that Netflix would even consider doing that. But, since the streaming service seeks to expand its original shows, ads marketing its own content might be an efficient way to make subscribers aware of all the content available on Netflix.