Netflix reportedly loses over $ 1.5 billion a year in revenue with account shares -

Geeko

Over the years, Netflix has gained in popularity, so that today it has become the clear leader in this market.

A popularity that has earned it the subject of many rumors, including that according to which Netflix would introduce advertising on its platform.

A rumor that comes back regularly, despite the refutations of the principal concerned.

But one could wonder if advertising would not be a possible solution to bail out Netflix's coffers instead of regularly increasing the prices of its subscriptions.

Some services have already given in to temptation, such as Hulu and Peacock, but for Reed Hastings, director of Netflix, this is not the best solution.

The man reaffirmed his opposition to the presence of advertising on Netflix during an interview with Variety.

For Reed Hastings, the lack of advertising "is the belief that we can build a better business, a more valuable business [without advertising]."

A proven strategy

“Advertising seems easy until you get there.

Then you realize you have to extract revenue from other places because the total ad market is not growing, and in fact right now it's shrinking, ”he explained.

“It's a hand-to-hand fight to get people to spend less on, you know, ABC and spend more on Netflix.

There is a lot more growth in the consumer market than in advertising, which is quite stable.

We went public 20 years ago at about a dollar a share, and now we're at [over] $ 500.

So I would say our subscription-based strategy has worked pretty well.

But that's basically what we think is the best capitalism, as opposed to a philosophical thing ”.

The director of Netflix had already indicated in the past that alongside behemoths such as Google, Facebook or Amazon, the streaming service would certainly not be enough to land interesting advertising contracts.

It is therefore easy to imagine that the ad will not appear on Neftlix anytime soon.

The firm has made it one of its flagship arguments for many years.

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