Top executives over at streaming service Hulu expect rival Netflix will need to run ads to keep its current business model viable…
There are two big attractions for streaming video services: no ads and on-demand, no appointment viewing. People simply don’t like ads. These detract from the experience and that’s what makes streaming so very increasingly popular.
Hulu Executives Predict Rival Netflix will Eventually Run Ads
This prediction comes in the light of Netflix’s present strategy — offering original content. That costs money to produce, a whole lot of money. And, with Disney+ on the horizon, more licensing of third-party content and originals is quite necessary.
Hulu ad executive Linda Yaccarino gives the following explanation for her company’s prediction about future Netflix ads:
“When you have to make more programming that’s not guaranteed to be a hit, you have to spend more money, you have to build your brand, you have to help the consumer discover your stuff — the price will go up for the subscription, and it would be logical to mitigate those increases to take ads.”