Reed Hastings, the head of popular streaming service Netflix, has again stated the company will not run ads on its platform…
Despite the ongoing rumors that Netflix will start running ads, the company still isn’t caving to investor pressure. CEO Reed Hastings explains the reason is the fact there’s no such thing as “easy money” and that doing so would be “exploiting users.”
Netflix CEO Reed Hastings Reiterates Ads are not Coming to the Streaming Service
Netflix CEO Reed Hastings strongly rebuffed the notion of running ads during its Q4 earnings call — yet again.
Hastings pointed out that in order to grow the streaming platform into a $5 billion to $10 billion ad business, it would take considerable investments. Plus, it also means having to take up the challenge of taking market share away from Google and Facebook.
Furthermore, Hastings explains the enormous obstacles of such a venture and that it doesn’t comport with what the company is trying to accomplish:
“Google and Facebook and Amazon are tremendously powerful at online advertising because they’re integrating so much data from so many sources. There’s a business cost to that, but that makes the advertising more targeted and effective. So I think those three are going to get most of the online advertising business.
We’ve got a much simpler business model, which is just focused on streaming and customer pleasure.
We don’t collect anything. We’re really focused on just making our members happy.”