Re:Netflix Should Sell Ads
by Ericson2314 on Tuesday April 05, 2022 @02:35PM
(#30923012)
Free tier vs paid tier always made perfect sense in theory, but what industry has actually pulled this off?
Newspapers? Hah. Spotify? Perhaps.
The problem with capital-gains-driven investment is Netflix can't just sit semi-sustainability at a steady share price and just pay out a dividend. Instead we're likely to see all sorts of jerking around until the business shoots itself in the foot.
Re:Netflix Should Sell Ads
by Ericson2314 on Tuesday April 05, 2022 @02:37PM
(#30923041)
Without getting to "rate of profit tends to fall-y" the goal of a business, rather than its owners, should be to become a utility.
Low margin, boring, ubiquitous, essential.
This is the highest award society bestows on a good service.
Stratechery suggests that:
> markets like India have more room to grow, but much lower household incomes, and Netflix’s relatively high prices have been an obstacle.
> advertising-supported or subsidized tier would expand Netflix’s subscriber base, which is not only good for the company’s long-term growth prospects, but also competitive position when it comes to acquiring content.
>This also applies to the company’s recent attempts to crack down on password sharing, and struggles in the developing world: an advertising-based tier is a much more accessible alternative.
>[Ad-supported plans] would provide an alternative for marginal customers who might otherwise churn, and on the other hand, it would create a new benefit for those willing to pay (i.e. no advertising for the highest tiers).