December 9, 2021
Marc Randolph predicts no Netflix ads

Netflix Co-Founder Explains Why the Streaming Service won’t Introduce Ads

It isn’t at all likely Netflix will integrate advertising into its platform, according to Marc Randolph, a co-founder of the company…

Every now and again — which is to actually say, quite often — market analysts and industry watcher alike wonder about Netflix running ads.

In fact, there’s a lot of speculation about the matter and even lengthy projections about its profitability. Forecasts predict if Netflix ran ads, it would generate over $1 billion per year. But, that’s not a likely scenario, according to a prominent and former insider.

Netflix Co-Founder Marc Randolph Calls Ads a “Distraction”

In an interview with BGR, Marc Randolph, a co-founder of the company, makes it clear Netflix probably won’t ever run ads:

“I’d certainly be extremely surprised to ever see ads on Netflix, only because Netflix is so focused on the Canada Principle. These things which seem like low-hanging fruit never are. Ads are a distraction, never an additive thing.”

For those unfamiliar, the “Canada Principle” refers to a decision made early on in the company’s existence not to mail DVDs to Canada. Randolph believed having to trade in different currencies would be unnecessarily complicated. So much of a complication, it would ultimately wind up as a substantial downside.

Obviously, Randolph believes if Netflix ran ads, it would change the experience so much, it would be detrimental to the company.

Netflix has tested showing ads in the past and the experiment did not go well with its customers.

William Boleys

Will is an experienced freelance writer who covers a wide range of topics, including apps, social media, and search.

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