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Re:Netflix Earnings Are Driven by Investment in Original Con... by joezydeco on Monday January 23, 2017 @12:42AM (#13460064)
This comment from Reddit user SmegmataTheFirst really nails it:

"tl;dr: Advertising ruins everything, which is why netflix originals are better than cable TV shows."

https://np.reddit.com/r/technology/comments/5ou7px/netflixs_...

Re:Netflix Earnings Are Driven by Investment in Original Con... by tantanel on Monday January 23, 2017 @04:01AM (#13460851)
Well, Netflix does have advertising in their originals, but it's much less in intrusive than the regular ad breaks. It comes in the form of product placement - characters preferring certain brands of beer, going to certain supermarkets, being fascinated by certain gadgets etc. House of Cards even had a warning about it at the beginning of the show, at least on Netflix UK.

Personally I'm not too bothered by it as long as it's subtle, and so far it has been.

Re:Netflix Earnings Are Driven by Investment in Original Con... by sleepychu on Monday January 23, 2017 @04:23AM (#13460936)
Perhaps I'm just sensitive to it but the House of Cards placement in particular seemed really conspicuous to me. (Maybe especially because they just all had iPhones in the previous season and so there were lots of iPhone shots when they used their phones).

But generally I find I notice the product placement spots because they seem out of the flow of the program, I guess they work best when the brand is more hands-off and lets the creator do it subtly.

Re:Netflix Earnings Are Driven by Investment in Original Con... by transcranial on Monday January 23, 2017 @10:37AM (#13462876)
I actually played the amazing game Monument Valley after seeing it in House of Cards. Although from what I can recall this wasn't paid placement so much as the writers just loved the game.
Re:Netflix Earnings Are Driven by Investment in Original Con... by sleepychu on Monday January 23, 2017 @01:18PM (#13464404)
I just looked that up because I couldn't believe it. What? It's so ham fisted!
Re:Netflix Earnings Are Driven by Investment in Original Con... by kyriakos on Monday January 23, 2017 @04:34AM (#13460977)
I don't even notice them and even if I had I wouldn't mind. I mean characters will use a phone in the series, the production might as well get something out of it. It becomes a problem when the plot is built around the product placement e.g its done a lot in modern family
Re:Netflix Earnings Are Driven by Investment in Original Con... by DanBC on Monday January 23, 2017 @05:13AM (#13461133)
It was pretty heavy handed in some episodes of House of Cards. https://www.youtube.com/watch?v=sGDgnp7-uck
Re:Netflix Earnings Are Driven by Investment in Original Con... by Diederich on Monday January 23, 2017 @10:43AM (#13462921)
I've only watched a few episodes of House of Cards, and none of them were this episode.

I can see why you'd consider it heavy handed. Had I watched that in the episode proper, it would have set off the 'placement ad!' bell in my head.

However, as stated elsewhere, that's orders of magnitude less invasive than a real ad., and it would not break the flow of the show, for me, at all.

It's really the same kind of exchange I have actually been involved with many times in real life.

Re:Netflix Earnings Are Driven by Investment in Original Con... by kenver on Monday January 23, 2017 @10:09AM (#13462652)
Out of context like that it seems really obvious, but with the background of the character (he likes playing video games to relax), the first time I saw that it didn't seem so out of place for him to be interested in the gadgets. It does seem incredibly blatant in the clip though.
Re:Netflix Earnings Are Driven by Investment in Original Con... by DanBC on Monday January 23, 2017 @10:48AM (#13462960)
> (he likes playing video games to relax)

No, he likes playing video games on his PLAYSTATION(TM) to relax, and it feels like this bit of character detail was kludged in purely to satisfy the product placement requirement.

It's obvious that with a different sponsor the character would have had different behaviours.

Re:Netflix Earnings Are Driven by Investment in Original Con... by xapata on Monday January 30, 2017 @12:56AM (#13519005)
I dunno about that. The dialogue felt natural to me.
Re:Netflix Earnings Are Driven by Investment in Original Con... by tallanvor on Monday January 23, 2017 @04:43AM (#13461011)
I've just started watching House of Cards this month, and there is a disclaimer from Netflix that the show contains product placements, so at least they're being honest about it.
Re:Netflix Earnings Are Driven by Investment in Original Con... by rocgf on Monday January 23, 2017 @04:50AM (#13461042)
IANAL but I also think it might be illegal not to disclaim it in certain places. Not sure about UK, but it definitely is in certain European countries.
Re:Netflix Earnings Are Driven by Investment in Original Con... by ciaranm on Monday January 23, 2017 @05:17AM (#13461145)
Apparently there's a logo that has to be run before & after the show - but only if the show is made in the UK - https://www.ofcom.org.uk/tv-radio-and-on-demand/advice-for-c...
Re:Netflix Earnings Are Driven by Investment in Original Con... by jdormit on Monday January 23, 2017 @10:08AM (#13462639)
FWIW, I watched House of Cards in the the US and did not see any disclaimers about product placement.
Re:Netflix Earnings Are Driven by Investment in Original Con... by efdee on Monday January 23, 2017 @04:56AM (#13461062)
Belgium is one of those countries. We have a little PP logo displayed at the start of shows that contain product placement.
Re:Netflix Earnings Are Driven by Investment in Original Con... by gcp on Monday January 23, 2017 @11:24AM (#13463269)
Ah, so that's what that means!
Re:Netflix Earnings Are Driven by Investment in Original Con... by tantanel on Monday January 23, 2017 @04:28AM (#13460954)
I think I would have noticed far less of the placements if it hadn't been for the "warning" before the episodes. :)
Re:Netflix Earnings Are Driven by Investment in Original Con... by sleepychu on Monday January 23, 2017 @04:42AM (#13461008)
Amusingly I didn't notice the warning!
Re:Netflix Earnings Are Driven by Investment in Original Con... by dexterdog on Monday January 23, 2017 @11:10AM (#13463142)
To be fair, actors often use their own phones and those tend to be iPhones far more often than they are with the general population.
Re:Netflix Earnings Are Driven by Investment in Original Con... by josefresco on Monday January 23, 2017 @09:53AM (#13462524)
To be fair, network and cable TV shows do this as well - AND run commercials.
Re:Netflix Earnings Are Driven by Investment in Original Con... by drzaiusapelord on Monday January 23, 2017 @10:00AM (#13462579)
I guess its okay if its subtle, but I'm still scratching my head over an episode of Mr. Robot that was pretty much an Amazon Alexa commercial. The Alexa dialogue didn't do anything to advance the plot or build out the characters or build drama. It was completely tacked on and a bizarre attempt at several minutes of product placement. Worse, the USA Network also runs ads. So it was needless double-dipping.
Re:Netflix Earnings Are Driven by Investment in Original Con... by jdormit on Monday January 23, 2017 @10:10AM (#13462655)
To be fair, the message I got from that episode was "Alexa is a poorly designed friend replacement for lonely people", so I'm not sure Amazon really got their money's worth there.
Re:Netflix Earnings Are Driven by Investment in Original Con... by danso on Monday January 23, 2017 @10:37AM (#13462872)
Yeah, I saw it asa way to flesh out the anti-social nature of Dom. And I'm not sure if it's the same episode as her Alexa chats, but the scene of the lawyer's apartment going all haunted (via hack) certainly isn't a strong endorsement for smart homes.
Re:Netflix Earnings Are Driven by Investment in Original Con... by dexterdog on Monday January 23, 2017 @11:09AM (#13463130)
I thought the Alexa part was an easy explanation of how alone the character is.
Re:Netflix Earnings Are Driven by Investment in Original Con... by flurdy on Monday January 23, 2017 @05:04AM (#13461090)
Nokia's banana phone and Matrix comes to mind. I assume it was a product placement or they just picked what at the time was a good looking phone, though it seems odd now.
Re:Netflix Earnings Are Driven by Investment in Original Con... by ascagnel_ on Monday January 23, 2017 @08:37AM (#13462045)
The phone from the movie was just to look cool -- while Nokia did make the slider phone, they never made the spring-loaded version in the movie.
Re:Netflix Earnings Are Driven by Investment in Original Con... by DanBC on Monday January 23, 2017 @05:45PM (#13466880)
The Nokia 8110 is the one used in the Matrix. The later model, the 7110, was spring loaded. I still have mine. The spring broke, which is a bit frustrating. At the time it was a really nice phone though.

http://neuro.me.uk/bitsnbobs/matrixphone/

https://en.wikipedia.org/wiki/Nokia_7110

Re:Netflix Earnings Are Driven by Investment in Original Con... by drzaiusapelord on Monday January 23, 2017 @10:03AM (#13462603)
It helps to remember what phones look like at the time. They were all fairly ugly and blocky. The spring loaded mouthpiece was fairly cool looking. Of course, it doesn't exist. That phone never had a spring in it. That was a modification for the movie and I'm fairly certain you couldn't make out the logo or brand. So I'm guessing this probably wasn't product placement. Imagine the angry customers flocking to the store to see that the phone doesn't do what it did in the movies.
Re:Netflix Earnings Are Driven by Investment in Original Con... by mrfusion on Monday January 23, 2017 @11:21AM (#13463245)
If it's done tastefully it's actually less jarring than blurring out brands or making up fake ones.
Re:Netflix Earnings Are Driven by Investment in Original Con... by moomin on Monday January 23, 2017 @04:07AM (#13460882)
Never mind advertising, look at how awful the interface is on Amazon to get an idea of why Netflix's content is crushing it. For instance, Transparent and Catastrophe are both Amazon Prime shows and are reportedly excellent. I have never seen the UI suggest I watch them. It's too busy suggesting I buy something. (Oh yeah, advertising...)
Re:Netflix Earnings Are Driven by Investment in Original Con... by citizenkeen on Monday January 23, 2017 @10:22AM (#13462752)
Every time I use Amazon, I say "I wish this UI was half as good as Netflix's."

Every time I use Hulu, I say "I wish this UI was half as good as Amazon's."

Re:Netflix Earnings Are Driven by Investment in Original Con... by JBlue42 on Monday January 23, 2017 @10:28PM (#13468582)
So much this. Netflix > Amazon > Hulu.

For players: Amazon's interface is much better than it used to be when Prime TV firt began but it has a lot of gimmicks too that take time to understand. Hulu's still buffers or gets stuck on an ad or does something dumb.

Finding stuff: Hulu isn't great for that and I hate my queue/watchlist. I think it was following in the footsteps of Netflix, switching to the big pictures, which I'm assuming is meant for swipe-y screens/tvs more so than the computer browser these days. The findability of items on Amazon is appalling, despite having a generally good selection.

To actually browse, on Prime and Netflix at least, I use instantwatcher.com.

Re:Netflix Earnings Are Driven by Investment in Original Con... by ethbro on Monday January 23, 2017 @07:49AM (#13461808)
I only use the Amazon app on a slightly-old LG tv, but it's still pretty terrible.

Slow, ugly, poor UX.

Netflix on the same device is excellent.

Re:Netflix Earnings Are Driven by Investment in Original Con... by lobster_johnson on Monday January 23, 2017 @01:37PM (#13464606)
I have an Apple TV, so to watch Amazon content I'm consigned to stream it from my phone using AirPlay.

However, that works surprisingly well. And it has a bonus feature: While the episode is playing, you get annotations on the phone about what actors are on the screen and what music is playing, with the ability to click on them to get bios etc.

(I'm sure this isn't offered on every show streaming on Prime; the last example I remember was Goliath.)

Re:Netflix Earnings Are Driven by Investment in Original Con... by flurdy on Monday January 23, 2017 @05:13AM (#13461131)
This a million. Hence why I only watch BBC IPlayer, Netflix and somewhat Amazon Prime. No ads.

Also why I don't bother streaming from UK's other commercial channels e.g. ITV and Channel 4 as they are riddled with ads. And you have to log into them which is annoying, not helped by rubbish players especially on Linux. May also be that their programming is mostly irrelevant, e.g. reality show and singing contests etc.

I do endure some ads when streaming sports channels. (Sky sports, BT Sports, Eurosport). But at least then they are limited to before and after the events.

Re:Netflix Earnings Are Driven by Investment in Original Con... by jon-wood on Monday January 23, 2017 @05:48AM (#13461260)
I've been doing TV via iPlayer, (formally) piracy, and now Amazon Prime and Netflix for about five years now. I can't stand watching TV with adverts now, I find it almost impossible to follow a TV show when the story is being interrupted every 15 minutes to bombard me with adverts for things I don't want, so I just don't bother starting.
Re:Netflix Earnings Are Driven by Investment in Original Con... by ethbro on Monday January 23, 2017 @07:47AM (#13461797)
This, more than anything else, sums up why Netflix is doing so well.

Viewers/subscribers are a zero sum game, as they're not growing as a total in places like the US.

Traditional content was designed in a content-scarce environment (from the few broadcast channels, to a few more cable channels, to VHS, to DVD).

That's not the world we live in anymore: now it's a time-scarce environment.

There's more content (both legacy and new) than I could hope to consume, so I'm only interested in the best content for me. Traditional content providers aren't optimized for micro-targeting.

Re:Netflix Earnings Are Driven by Investment in Original Con... by amorphid on Monday January 23, 2017 @09:11AM (#13462230)
It's been about 8 years since I've had a cable television subscription, and it now feels really weird that past me was willing to pay $100+ USD/month to have access to television shows filled with commercials. I barely have the patience to sit through a single commercial anymore. Not only am I unlikely to buy any given car, feminine product (as a male), bottle of alcohol, financial product, prescription drug, etc., I simply don't want to reminded 58 bajillion times that I need something I really don't need or want.
Re:Netflix Earnings Are Driven by Investment in Original Con... by dazc on Monday January 23, 2017 @05:57AM (#13461307)
If you want to watch ITV shows without the ads use the Scottish STV Player instead of ITV Hub (or whatever they call it now?).

For some odd reason they cut out the ads although you have to create an account and give them a Scottish address and postcode.

Caveat/ the app sucks btw so you have to use the web version.

There are occasional gems worth the effort, but not many.

Re:Netflix Earnings Are Driven by Investment in Original Con... by JumpCrisscross on Monday January 23, 2017 @05:43AM (#13461252)
> Hence why I only watch BBC IPlayer, Netflix and somewhat Amazon Prime. No ads.

No third-party ads. Prime pre-roll advertises its shows in its own show.

Re:Netflix Earnings Are Driven by Investment in Original Con... by alphonsegaston on Monday January 23, 2017 @10:26AM (#13462789)
This somehow never fails to anger me with HBO as well. Why are you interrupting a service I'm paying for to advertise...the service? They could just have a previews section in their apps and call it good.
Re:Netflix Earnings Are Driven by Investment in Original Con... by flurdy on Monday January 23, 2017 @05:51AM (#13461281)
I am ok with that. It at least is somewhat relevant. And Im not really watching the screen yet, adjusting ear plugs etc.
Re:Netflix Earnings Are Driven by Investment in Original Con... by alistproducer2 on Monday January 23, 2017 @10:36AM (#13462870)
I'm going to have to agree. I recently cut the cord and now when I watch network TV (via my DTV tuner) commercials feel really jarring. One of the reasons I cut the cord and got off social media is I began to feel as though many of my thoughts were not my own anymore because I was subjecting myself to daily brainwashing . the further away from those services I get, the more abnormal they seem.
Re:Netflix Earnings Are Driven by Investment in Original Con... by Joeri on Monday January 23, 2017 @12:45AM (#13460076)
Why are there ads on cable tv? Why can't they just charge tv subscribers the whole amount and get rid of ads on tv? If netflix can do it, why can't tv do the same?
Re:Netflix Earnings Are Driven by Investment in Original Con... by JoshTriplett on Monday January 23, 2017 @01:05AM (#13460169)
> Why can't they just charge tv subscribers the whole amount

The secret is that there's no "whole amount", because that would imply the concept of "enough money". There's no such thing as "enough money".

I mean that entirely non-sarcastically; to the extent it doesn't go to cover their costs, it goes to increase their profit, which has no upper bound. If they've found a way to extract more money, they'll do it. They question then becomes "to what extent have they found a larger revenue stream, and to what extent have they obtained more money now by alienating customers and driving them to other services".

Re:Netflix Earnings Are Driven by Investment in Original Con... by Bombthecat on Monday January 23, 2017 @01:27AM (#13460266)
I expect from Netflix no less. As soon the growth phase is over. They will turn to ads.
Re:Netflix Earnings Are Driven by Investment in Original Con... by JoshTriplett on Monday January 23, 2017 @02:12AM (#13460443)
They have too many competitors right on their heels for that. Netflix introducing ads would drive people to Amazon Prime, and vice versa. (Hulu partially gets away with it because they have an offering their competitors don't, namely seasons still in progress.)
Re:Netflix Earnings Are Driven by Investment in Original Con... by sleepychu on Monday January 23, 2017 @04:27AM (#13460949)
Amazon Prime has gotten awful for adverts. They have pre-rolls for their other shows, which you could consider OK at the moment but this is exactly what happened with their Fire $TV_DEVICE line. They had a banner ad for new shows and that banner ad slowly morphed into advertising for financial services and such.

I've never been so upset about a product like this. I think I paid ~70GBP for the Fire TV and 20 each for two Fire TV sticks and then they sneak advertising in with a software update after the fact. It's particularly egregious because they've recognised the equivalence of ads and charging you money on their tablet range which I think you can buy at a discount if you agree to have ads shown to you on the home screen.

Re:Netflix Earnings Are Driven by Investment in Original Con... by mysticmarvel on Monday January 23, 2017 @08:23AM (#13461977)
Bin them. Bin Amazon Prime too. Be sure to tell them why you're doing it.

Cable was originally advert-free. It was slipped in gradually over time. They got away with it because people put up with it and didn't call foul and stop subscribing. Expect Amazon, Netflix, everyone to do it. Precedent was set with cable subscriptions. The bar is set very low, and our resistance is known to be pitiful.

Re:Netflix Earnings Are Driven by Investment in Original Con... by sleepychu on Monday January 23, 2017 @08:48AM (#13462112)
> Cable was originally advert-free.

I don't think that's true, https://news.ycombinator.com/item?id=13460306

> Bin them. Bin Amazon Prime too.

That would be altruistic but I don't think that enough people will do it with me (and I have no interest in organising them to do so). I'm tempted to return the device since they've changed the fundamental functionality, IMO.

Re:Netflix Earnings Are Driven by Investment in Original Con... by ethbro on Monday January 23, 2017 @07:52AM (#13461832)
I realize I'm not the prime demographic for this.

But why would I ever be interested in watching a season in progress when I can watch backlog until it finishes, then watch the entire season on my own schedule?

Re:Netflix Earnings Are Driven by Investment in Original Con... by JoshTriplett on Monday January 23, 2017 @09:10AM (#13462223)
Two reasons. First, because during the initial transition from cable, you might want to keep watching existing shows from where you left off, without having to wait for the end of the season. And second, because other people watch the show live and you want to keep up with them.

The first problem goes away after the initial transition, and the second goes away when everyone you know also uses Netflix and/or Amazon Prime. But don't underestimate the value in getting people to switch.

Re:Netflix Earnings Are Driven by Investment in Original Con... by wmil on Monday January 23, 2017 @08:53AM (#13462135)
There's a social aspect to popular TV shows that are airing.

If you keep up to date you can discuss the EP on various forums right after it airs. Then it's something to talk about with your co-workers who are also fans.

Re:Netflix Earnings Are Driven by Investment in Original Con... by dogma1138 on Monday January 23, 2017 @04:34AM (#13460976)
Both Netflix and amazon have season in progress with weekly releases not as much in the US tho.
Re:Netflix Earnings Are Driven by Investment in Original Con... by thomasz on Monday January 23, 2017 @01:34AM (#13460298)
In that case, I'm dead sure that a lot of their customers will return to piracy.
Re:Netflix Earnings Are Driven by Investment in Original Con... by hkmurakami on Monday January 23, 2017 @01:55AM (#13460376)
How many is a lot? If the proportion of revenue increase outweighs subscriber loss, it's still worth inserting ads.
Re:Netflix Earnings Are Driven by Investment in Original Con... by Freak_NL on Monday January 23, 2017 @04:47AM (#13461025)
Only if all competitors did the same. Unlike cable or terrestrial broadcast television, with Netflix the consumer has choice and can simply go to a competitor (this includes piracy). If Netflix starts experimenting with advertisements, they will give competitors a chance to move in on the subscribers that won't stand for it.

Losing subscribers is fine if they don't go anywhere else (because they can't), but losing subscribers to a competitor is a risky move.

Re:Netflix Earnings Are Driven by Investment in Original Con... by sriku on Monday January 23, 2017 @07:14AM (#13461616)
I expect the same too. In a capitalist economy, companies need to market their products and they will always find a way to pay media companies for eye time. At the outset, I think fighting ads is. Lost cause though depending on the novelty of media there may be temporary relief.
Re:Netflix Earnings Are Driven by Investment in Original Con... by tehwebguy on Monday January 23, 2017 @04:14AM (#13460909)
No chance IMO. The pool of competing content buyers is rapidly growing.
Re:Netflix Earnings Are Driven by Investment in Original Con... by gozur88 on Monday January 23, 2017 @01:56AM (#13460377)
>I mean that entirely non-sarcastically; to the extent it doesn't go to cover their costs, it goes to increase their profit, which has no upper bound.

Really? So why don't they show more commercials, or charge more for the service?

The reason there are commercials is it allows them to offer the service for less money and most people don't care.

Re:Netflix Earnings Are Driven by Investment in Original Con... by JoshTriplett on Monday January 23, 2017 @02:07AM (#13460420)
> Really? So why don't they show more commercials, or charge more for the service?

Because there's a balance where doing more would lead to much more immediate revenue loss. Few people would watch a channel with 20 minutes of commercials for every 10 minutes of show, but network TV has already demonstrated that people will watch shows with 8 minutes of commercials for every 22 minutes of show, especially if they don't have a good alternative. The loss of customers from such a move takes longer to show up in the bottom line, and it started before alternatives like Netflix existed.

> The reason there are commercials is it allows them to offer the service for less money and most people don't care.

They're not in the business of offering a specific fixed service for as little money as it takes to cover their costs; that logic would apply to a non-profit or co-op, not a for-profit company. For a for-profit company, lowering prices isn't an end, it's a means.

Re:Netflix Earnings Are Driven by Investment in Original Con... by gozur88 on Monday January 23, 2017 @03:39AM (#13460767)
>They're not in the business of offering a specific fixed service for as little money as it takes to cover their costs; that logic would apply to a non-profit or co-op, not a for-profit company. For a for-profit company, lowering prices isn't an end, it's a means.

Of course. There's nothing nefarious going on here. They're constrained by competition, the amount of advertising people will tolerate, and what their customers are willing to pay, but within those constraints they'll set up the business so that between commercials and the monthly fee they make the most money.

Re:Netflix Earnings Are Driven by Investment in Original Con... by TeMPOraL on Monday January 23, 2017 @06:44AM (#13461500)
And so circling back to the original question:

> Why can't they just charge tv subscribers the whole amount and get rid of ads on tv?

It's because doing that would mean artificially constraining their own business when they don't have to do that. So why would they?

Re:Netflix Earnings Are Driven by Investment in Original Con... by ethbro on Monday January 23, 2017 @07:59AM (#13461857)
Hypothetically, because they've reached a local maxima. And they recognize that their customers like their current product.

As the article itself notes, few people buy a subscription service for one or two shows.

If Netflix can continue to bid high enough to starve its competitors of high-quality content (because it can amortize its costs over a larger subscriber base), then no competitor can grow large enough to compete without running substantial initial deficits (which Netflix can make temporarily worse if they choose to, by overpaying for content and driving prices up).

So essentially, lack of competition.

Re:Netflix Earnings Are Driven by Investment in Original Con... by hvidgaard on Monday January 23, 2017 @02:38AM (#13460545)
The goal is to maximize profits. If they show commercials for 30 min every hour, they lose subscribers and devaluate the commercial slots.

Somewhere is the optimal balance, where they have lots of subscribers, and show just the right amount of commercials to prevent people from leaving, and thus maximize the value of the ad slots.

Personally, I don't pay for anything with commercials. I just don't want to pay to be fed ads. Instead I pay for streaming services and movies. But if they want to sell me premium channels without commercials, I'll consider it.

Re:Netflix Earnings Are Driven by Investment in Original Con... by vostok on Monday January 23, 2017 @04:16AM (#13460918)
How do you feel about paying for content with product placement or native advertisements?
Re:Netflix Earnings Are Driven by Investment in Original Con... by hvidgaard on Monday January 23, 2017 @05:03AM (#13461088)
Far less reluctant. Product placement, is so obvious anyway, but the alternative is some fictional name/logo. It doesn't detract from my experience, so I'm okay with it (for now).
Re:Netflix Earnings Are Driven by Investment in Original Con... by TeMPOraL on Monday January 23, 2017 @06:45AM (#13461504)
As long as it's not something utterly absurd - like that Nokia tune in J.J. Abrams' (bastardization of) Star Trek.
Re:Netflix Earnings Are Driven by Investment in Original Con... by JoshTriplett on Monday January 23, 2017 @04:29PM (#13466216)
Subtle product placement ("we need a product here anyway, do you want it to be yours or your competitors") seems completely fine to me. If the script calls for them to drive a car or drink a soda, and nothing in the plot depends on the details, then why not?

As for "native advertisements": it really depends on genuineness, and disclosure.

Re:Netflix Earnings Are Driven by Investment in Original Con... by nerfhammer on Monday January 23, 2017 @12:47AM (#13460090)
Cable originally didn't have ads. They just discovered they could put ads in and nobody cancelled their subscriptions.
Re:Netflix Earnings Are Driven by Investment in Original Con... by rchowe on Monday January 23, 2017 @01:37AM (#13460306)
This is actually a common myth. Cable initially was a service where the feed for certain terrestrial broadcast stations was transmitted over a cable for users who could not receive a clear signal. Since the same feed was used, it had the ads the broadcast affiliate put into it.
Re:Netflix Earnings Are Driven by Investment in Original Con... by gozur88 on Monday January 23, 2017 @01:51AM (#13460361)
The original microwave pay channels didn't have commercials. But cable always did.
Re:Netflix Earnings Are Driven by Investment in Original Con... by sametmax on Monday January 23, 2017 @02:06AM (#13460417)
Which basically means it's the consummer fault again. I mean, yes, they are evil. But just like disease, it's useless to blame it. There will always be diseases. It's our responsibility to cure current ones and create environments to avoid future ones. Which means for businesses, if you want them to stop misbehave, you should stop rewarding them when they do. Just like in politics.

Which amazingly we don't do.

Re:Netflix Earnings Are Driven by Investment in Original Con... by FatalBaboon on Monday January 23, 2017 @07:18AM (#13461649)
Especially in a capitalistic world, I believe this is paramount.

Oh you don't like google and facebook eventually abusing what they know about you? Don't use their services.

Re:Netflix Earnings Are Driven by Investment in Original Con... by sametmax on Monday January 23, 2017 @08:54AM (#13462141)
In a capitalistic world, the bank note is a vote bulletin. The only one that is always listened to, and that you can use every day, on every topic. And also the one they don't teach you about in school.
Re:Netflix Earnings Are Driven by Investment in Original Con... by daemin on Monday January 23, 2017 @06:43AM (#13461499)
In Australia when pay/cable TV first came in it was ad free, but then ads were slowly added to it, first just ads for content on the channel, but then normal ads came in. People were rightly angry about this because they thought that by paying for TV they could skip the ads.

However it turned out that by paying for TV they were signaling to advertisers that they were better off (and willing to spend money for things) than regular free-to-air TV watching people, and therefore their eyeballs were worth more. So now pay/cable TV in Australia has more ads per hour than free to air TV.

Re:Netflix Earnings Are Driven by Investment in Original Con... by dragonwriter on Monday January 23, 2017 @02:00AM (#13460394)
> Why are there ads on cable tv?

To pay the bills.

> Why can't they just charge tv subscribers the whole amount and get rid of ads on tv?

That's what premium channels (HBO, Cinemax, etc.) do, and they appeal to a different audience than non-premium cable, because most people are more willing to accept the cost of advertising than the cost of paying for premium channels.

Re:Netflix Earnings Are Driven by Investment in Original Con... by candiodari on Monday January 23, 2017 @10:33AM (#13462849)
https://ir.netflix.com/common/download/download.cfm?companyi...

Look at the bottom line. Netflix lost 126 million dollars in 3 months. Revenue per user is negative and going down. Needless to say, this can't last. Either price more than doubles, or ads come.

Re:Netflix Earnings Are Driven by Investment in Original Con... by dpark on Monday January 23, 2017 @11:20AM (#13463233)
I don't understand what you're reading that's different from what I'm reading. Where do you get this 126 million dollar loss? Netflix reported net income of $66.7MM for the quarter and $186.7MM for the year. [1]

And how could revenue per user be negative? Even if Netflix were burning cash they wouldn't have negative revenue.

[1 (xlsx)] http://files.shareholder.com/downloads/NFLX/3717249512x0x924...

Re:Netflix Earnings Are Driven by Investment in Original Con... by joezydeco on Monday January 23, 2017 @12:49AM (#13460109)
What does "the whole amount" mean?

Think about what your local cable company charges for HBO. They have no advertising and programming is pretty good. Back in the day it was $20/month, now it's something close to $10/mo, right?

What would your cable bill look like if every single channel was $10/month?

Re:Netflix Earnings Are Driven by Investment in Original Con... by rossjudson on Monday January 23, 2017 @12:53AM (#13460127)
I just navigated through Apple's maze to cancel my HBO subscription. I realized that, after months had gone by, it just represented a crap value next to Netflix.
Re:Netflix Earnings Are Driven by Investment in Original Con... by chime on Monday January 23, 2017 @01:07AM (#13460177)
I find HBO shows equal or better in quality than the best Netflix shows. Westworld was fantastic. My wife and I just started watching The Young Pope. In a few months GoT and SV will be back on. HBO is learning from Netflix and coming out with some fantastic shows. I also like catching recent movies on HBO before they show up on Netflix, Amazon Prime etc.

Of course, Netflix is well worth the subscription and if you don't watch a lot of TV, it has enough content to keep you entertained for a while. But I've noticed that I discuss HBO shows more with my friends/family than Netflix ones.

Re:Netflix Earnings Are Driven by Investment in Original Con... by dragonwriter on Monday January 23, 2017 @02:04AM (#13460408)
> HBO is learning from Netflix and coming out with some fantastic shows.

HBO was doing that long before Netflix had original programming and Netflix, fairly overtly -- as in, I'm pretty sure I remember Netflix execs saying this -- was following HBO's arc rather than vice versa.

Re:Netflix Earnings Are Driven by Investment in Original Con... by oddevan on Monday January 23, 2017 @11:43AM (#13463466)
The line was something to the effect of "We need to become HBO faster than HBO becomes us."

It happened.

Re:Netflix Earnings Are Driven by Investment in Original Con... by trevyn on Monday January 23, 2017 @01:32AM (#13460292)
I think you mean Netflix is learning from HBO.

Sopranos, The Wire, Deadwood, Sex and the City, Entourage, etc., all well before Netflix did originals.

Re:Netflix Earnings Are Driven by Investment in Original Con... by bayonetz on Monday January 23, 2017 @02:17AM (#13460461)
Well before these even. HBO has been pioneering the edgy, interesting, original content model for television shows since the 80's. 1st and 10, Larry Sanders Show, Oz, Real Sex, America Undercover, Not Necessarily the News, and on and on...

Netflix has obviously run with the idea though. I'd love to see Netflix and HBO merge actually.

Re:Netflix Earnings Are Driven by Investment in Original Con... by Fricken on Monday January 23, 2017 @01:40AM (#13460322)
Netflix makes it's content choices based on demographic data, and HBO makes it's choices because they have artists who are excited about the project and think it would make a wicked show. The old fashioned way gives better results IMO.
Re:Netflix Earnings Are Driven by Investment in Original Con... by sgift on Monday January 23, 2017 @03:14AM (#13460666)
That doesn't sound correct. HBO wouldn't make a show just because their artists are excited, but because the artists are excited and they think their demographic will watch it. Netflix makes the same, just for a different demographic and with more accurate data. It looks like these data points don't help them, which is interesting. Or those (on HN) who say they don't like the Netflix originals are not part of Netflix core demographic.
Re:Netflix Earnings Are Driven by Investment in Original Con... by nindalf on Monday January 23, 2017 @01:30AM (#13460284)
I live in a part of the world where the opposite is true. The Netflix catalogue of originals is there but apart from that its pretty weak. Not value for money at $8/mo. On the other hand there is a legit service that gives me the sports I'm interested in (minus basketball), all HBO shows and recent movies at $3/mo. I'm canceling my subscription to Netflix for now because I find I don't actually spend any time watching it.
Re:Netflix Earnings Are Driven by Investment in Original Con... by ghaff on Monday January 23, 2017 @08:39AM (#13462056)
Even in the US, Netflix is for watching their originals plus a pretty good back catalog of TV shows. If you're looking for anything else, it's a bonus if they happen to have it but you shouldn't really count on it.

A former Netflix tech guy once told me that "People get Netflix for the movies and stay for the TV shows." Though that's probably less true than it used to be given Netflix Originals and a pretty wide recognition that their streaming movie catalog is limited. Today it's probably the Originals that drive the purchasing (as with HBO).

Re:Netflix Earnings Are Driven by Investment in Original Con... by acchow on Monday January 23, 2017 @02:13AM (#13460451)
IMO, Netflix originals mostly suck and HBO is king. Tho, if you come from network and cable television and your standard of good television is Prison Break, I can see how Netflix content and its originals could be appealing.
Re:Netflix Earnings Are Driven by Investment in Original Con... by flukus on Monday January 23, 2017 @02:32AM (#13460514)
> IMO, Netflix originals mostly suck and HBO is king.

Lately I'd agree, but a few years ago that didn't have much and it was mostly high quality. So many of netflixs originals seem to fall into the super hero category that I'm not interested in.

Re:Netflix Earnings Are Driven by Investment in Original Con... by acchow on Monday January 23, 2017 @03:51AM (#13460817)
> but a few years ago that didn't have much and it was mostly high quality.

Which ones were those? Are you sure they were Netflix originals?

Re:Netflix Earnings Are Driven by Investment in Original Con... by flukus on Monday January 23, 2017 @06:00AM (#13461317)
House of cards, Marco polo, Vikings, OITNB. Not sure if they were Netflix originals everywhere but they were here.
Re:Netflix Earnings Are Driven by Investment in Original Con... by geon on Monday January 23, 2017 @01:27AM (#13460267)
They wouldn't need to force-bundle 20 other channels no one wants.
Re:Netflix Earnings Are Driven by Investment in Original Con... by ghaff on Monday January 23, 2017 @05:11AM (#13461120)
The thing is that those "20 other channels no one wants" typically cost them nothing or a minimal amount.

It is true that, if you start slicing out ESPN, A&E, etc. it would theoretically be possible to subscribe to an overall lower cable bill but the cable cos would almost certainly raise per-channel (or mini-bundle) pricing to compensate.

Re:Netflix Earnings Are Driven by Investment in Original Con... by joezydeco on Monday January 23, 2017 @10:19AM (#13462720)
As bad as bundling is, it also has historically subsidized smaller channels that sometimes come up with innovative programming that would otherwise never happen.

Everyone passed on Mad Men except this little movie-rerun channel called AMC. Would Walking Dead have happened without it?

Re:Netflix Earnings Are Driven by Investment in Original Con... by CaptSpify on Monday January 23, 2017 @11:52AM (#13463557)
Sucks to be them. Sorry, but why should I subsidize channels that nobody wants to watch? Sure, occasionally a hit will come out of them, but if a channel can't stay afloat on their own, too bad so sad!
Re:Netflix Earnings Are Driven by Investment in Original Con... by nikdaheratik on Tuesday January 24, 2017 @12:59AM (#13469144)
Well the vast majority of the money from bundling goes to ESPN. If you don't like sports, or only watch during one kind of sports season, then much of the money from cable is a waste.
Re:Netflix Earnings Are Driven by Investment in Original Con... by tn13 on Monday January 23, 2017 @01:00AM (#13460153)
Legacy and entrenched interests. Cable services have optimized their process to call and convert users instead of offering them something useful. TV is often bundled with internet and you are charged extra without you explictly asking for it.
Re:Netflix Earnings Are Driven by Investment in Original Con... by matthuggins on Monday January 23, 2017 @12:47AM (#13460093)
They can, but they don't want to remove revenue streams when enough people are willing to pay for it.
Re:Netflix Earnings Are Driven by Investment in Original Con... by josefresco on Monday January 23, 2017 @09:58AM (#13462561)
This. Why kill a revenue stream (from business), and piss off another stream (consumers) by raising prices?
Re:Netflix Earnings Are Driven by Investment in Original Con... by muse900 on Monday January 23, 2017 @05:31AM (#13461193)
I was paying sky in the UK around £70 a month.

I tried to watch Friends on comedy central, which is 20 minutes per episode... each episode had 3 ad slots... 3!!! ad!!! slots... and I was paying £70 a month for that thing, they were trying to milk me out... I've quit sky and I don't miss it at all, and am very glad I quit it.

Re:Netflix Earnings Are Driven by Investment in Original Con... by KineticLensman on Monday January 23, 2017 @08:48AM (#13462115)
I've also abandoned Sky to a combination of BT (my broadband provider) and Amazon Prime on a Firestick. In my experience so far Amazon has much less pre-movie advertising and also doesn't interrupt movie end-credits with a very intrusive ad while you are still in the movie's 'zone', which really annoyed me. The downside is the top-up charges of a few quid over and above prime membership costs to get most good films and TV shows. But for the amount I watch TV, this is still affordable, and the overall range of content is much larger than sky, even if you have to pay extra sometimes.
Re:Netflix Earnings Are Driven by Investment in Original Con... by coderdude on Monday January 23, 2017 @01:27AM (#13460268)
There aren't any ads on Netflix to begin with so I don't think that comment really nails anything. The shows are just good.
Re:Netflix Earnings Are Driven by Investment in Original Con... by larrik on Monday January 23, 2017 @10:46AM (#13462939)
The worst part of TV are the ads DURING the shows. Ads for other shows taking up a quarter of the screen, without regard for the what its blocking under it. Completely ridiculous.
Re:Netflix Earnings Are Driven by Investment in Original Con... by Shivetya on Monday January 23, 2017 @09:54AM (#13462532)
even that short spam fest of commercials prior to the show I wanted to watch on HBO's service was enough to make me cancel after the season ended. I simply didn't want to watch anything else they offered because of unskippable ad spam; its like those horrid DVD ads that some companies still have.

Still, while some of their original content is good I am not subscribing to their service just for that, let alone I don't need six semi super hero shows. If they keep pairing down their catalog I am going to lose interest real fast

Re:Netflix Earnings Are Driven by Investment in Original Con... by dagw on Monday January 23, 2017 @05:48AM (#13461264)
Personally I believe the pressure of reaching syndication and too long seasons ruins things as much as, if not more than, advertising.
Re:Netflix Earnings Are Driven by Investment in Original Con... by draw_down on Monday January 23, 2017 @12:52PM (#13464130)
Nobody ever got fired for buying IBM, and nobody ever got fired for talking bad about advertising on the internet.
Re:Netflix Earnings Are Driven by Investment in Original Con... by Esau on Monday January 23, 2017 @06:30AM (#13461436)
Agreed. I recently subscribed to Spotify and I love it.