In the list of rumors, forecasts and recurring elements in the plans of where things should go, the fact that Netflix is going to include advertising in the future is one of those that is positioned as recurring. Analysts have several compelling arguments to support their theories.On the one hand, consumers are increasingly tired of subscriptions and all payment formats. On the other, there is more and more competition, which leads to consumers wanting to pay less and less or having to distribute their budgets among more and more players. And, finally, the expenses that Netflix has been assuming over the years and its rate of content production have led to a certain pressure from investors and analysts. Netflix carries a lot of debt and spends a lot of money every year generating new content.But while forecasts and analysis insist that the future of Netflix depends on advertisements, the company’s management does not see it in the same way. A few months ago, when rumors circulated more actively about the move to the ad format, Netflix already insisted that it was not valuing it.Now, the company has once again insisted, following its last presentation of results, that advertising is not part of its plans.
The reasons they have used to Sweden Phone Number List indicate that they are not interested in advertisements also speak volumes about the problems of the advertising market and the points of tension that publishers and advertisers have to face in their relationship with consumers. Netflix insists that it is not its model and has also added that advertising – and what makes it work – is too problematic.Reed Hastings, the CEO of the company, has again insisted on the subject in the latest presentation of results of the firm. Netflix has no strategic interest in the ads and also wants to heal its health from possible data management problems.To serve advertising that works, you need to accumulate large amounts of data about your consumers, which are what then make it possible to efficiently segment and sell attractive niches.
Accumulating all that data can have a negative trade-off, as it can position companies in delicate positions.”Google, Facebook and Amazon are tremendously powerful in online advertising because they are integrating a lot of data from many sources,” Hastings responded to investors’ questions, also predicting that “those three” will take much of the online business in advertising.The manager also made it clear, as Variety collects , that he does not believe that advertising would generate quick and simple money. “There is no easy money there,” he pointed out, indicating that it is necessary to create a business, fight against the players that are entering the market and settle in the long term.
Hastings pointed out that this way “they don’t have exposure to something in which we are strategically disadvantaged”, which is to fight against the three giants of the advertising market.Healing in health in data And, of course, there is the question of data. Not collecting information to serve ads means that they are not exposed to the controversies that the data generates, especially those that mark how promotional messages are positioned and how certain keys are pressed in the audience, which is what has happened to Facebook in the last years.Of course, beyond what the manager points out and what Variety collects , it must be remembered that Netflix does collect data on its audiences, although it uses them simply to outline what it offers them and what series and movies they produce.