Netflix boss explains why the service doesn’t feature advertisements
Company CEO said it’s ‘not a rule…. it’s a judgment call’
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Your support makes all the difference.The CEO of Netflix has explained why the platform refuses to feature advertisements.
The popular streaming service instead operates on a paid subscription model, wherein viewers pay a monthly fee for access to advert-free content.
Reed Hastings explained to Variety: “It's definitely not a rule. It's a judgment call… It's a belief we can build a better business, a more valuable business [without advertising].
“You know, advertising looks easy until you get in it. Then you realize you have to rip that revenue away from other places because the total ad market isn’t growing, and in fact right now it’s shrinking.”
Some other services, such as All 4, do feature paid advertisements in lieu of the obligation for a subscription.
Hastings added: “I would say our subscription-focused strategy's worked pretty well. But it's basically what we think is the best capitalism, as opposed to a philosophical thing.”
Among the other revelations in the interview was the news that Netflix are considering branching out into other spheres of entertainment.
The platform already offers a mix of original films, reality TV series, documentaries, comedy shows, dramas and more, but Hastings confirmed that Netflix could keep expanding in the future.
"Sports, video gaming, user-generated content – if you think of the other big categories, someday it could make sense," he said.
Other streaming services, such as Amazon Prime Video, already offer live sports streaming, with Amazon owning the exclusive UK rights to tennis’s US Open and certain Premier League football fixtures.
Video game subscription services are becoming increasingly popular, such as Xbox Game Pass, likewise user-generation content platforms, like YouTube and TikTok.
Hastings did confirm, however, that Netflix is unlikely to venture into live news programming.
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