7 years ago
2
Netflix is giving up over $2 billion dollars a year by not showing ads
Netflix, the real superstar in modern entertainment, is certainly putting their money where there mouth is to keep their subscribers happy. A recent report by Exstreamist ran the numbers and found that if Netflix were to sell advertising slots along the lines of traditional broadcast and cable television, they could make over $2 billion dollars in additional annual revenue every year.
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https://www.engadget.com
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Note that this does not take into account what would happen to their subscriber numbers if they introduced ads. Citing the source of the article: "Netflix is well aware that if they introduced commercials, there would likely be a mass exodus of subscribers."
They are not "giving up" money, since it's money they don't have and, as a subscriber, I pay to watch, not to see ads, if I was to see ads, I would expect to watch it for free and I would subscribe to Amazon Prime.