Tag Archives: digital ads



A global ad supported Netflix is inevitable

April 1st, 2015

I’ve been watching Netflix and how they tackle the challenges in front of them for a while, my earlier post explored what would happen if Netflix was free.

There are a few driving forces here:

1) Netflix itself says it thinks going global will drop piracy. Read.

Their argument is that people are using VPNs and torrents to download anyway, as someone from New Zealand, people simply just download shows when they’re not available. However like Spotify I imagine a monthly model would have an impact on piracy.

2) There is brand demand for more digital video content.

Everyone I talk to is screaming for more video inventory, they want more people to watch more ads. Netflix in some respects has potential attention to monetize. If you’ve read my earlier post, I do think they will retain the paid model but they are positioned to earn more revenue from offering a free option.

3) If you think Netflix is more like YouTube than it is like HBO.

YouTube is a global platform of content, that is open and shared but not the best experience for lean back viewing. People go to YouTube for a purpose, as such ads seem more of a barrier. Netflix in essence has the same platform, just with more control on getting the content in. This is almost a Apple vs Microsoft dichotomy.

I think these will position Netflix in that way, with a global database, powered by digital video ads.

And under that view I think their growth potential is seemingly infinite.



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