Netflix did wonderful things for the entertainment industry.
Towards the end of 2000s, there was a very genuine risk that the whole industry might collapse as individuals discovered downloading options like BitTorrent and other third-party services that let them get away with stealing complete libraries of TV shows, movies and more.
Netflix started as a DVD delivery service, but as digital became more complex and abundant, they moved everything to a streaming model.
As a result, consumers have likely paid billions of dollars in extra monthly transfer fees and costs associated with their internet service providers (ISPs). The cable companies should be applausing Netflix’ efforts, not trying to compete with them!
All this said, it looks like (a) #Netflix will proceed with ads and (b) will likely use #Microsoft as the provider for implementation, tracking and reporting.
Talk about a ‘jump the shark’ moment (all you older folks will know what I’m talking about).
Ads will ruin Netflix and could ultimately issue a crushing blow to many content creators around the world.
Before they proceed, I’m sure they’ve already thought of the following, but just in case, I have a few thoughts about how #Netflix can actually avoid ads:
–> offer streaming quality on different freemium/premium tiers (eg. 4K = higher monthly cost) rather than just giving 4K to everyone.
–> product placement. You’re already product shots with shows like ‘The Lincoln Lawyer’. Do more of this. I find tasteful product placement innocuous and doesn’t interrupt viewing.
–> scale back on production. We’ve consumed a LOT of content over the last 3 years. This will not continue as life gets ‘back to normal’. You do not need hundreds of new shows every week.
–> Archives: what kind of #TV archives can you get access to and license and then sell as part of a premium package to #subscribers?
–> Volume access – if you want that latest season, you’ll have to pay a premium for it.
–> negotiation with cable suppliers. Media suppliers and infrastructure providers may want to bail on the content creation side of the business.
–> deliver unique content (eg. #NFB) that can’t be easily found anywhere else.
–> sell your data – I’m sure you’re already selling aggregate data (and shouldn’t be selling individual data), but there should be lots of research opportunities for the right organizations. Charge more for it.
The reality is this: when #Netflix goes against its original digital model (uninterrupted, ad-free #streaming), they’ll lose customers, including this family.
Competition like #Amazon #PrimeVideo and #DisneyPlus are too easy to get.