News for hackers. Stuff that matters.

A comment on Netflix Earnings Are Driven by Investment in Original Content. Parent comment

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.
[ Parent | on HN ]
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.
[ Parent | on HN ]
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.

[ Parent | on HN ]