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January 23, 2020 12:10 am

Netflix Is Still Saying 'No' To Ads

"During its Q4 earnings call, Netflix shot down the idea of an ad-supported option for its service," writes Slashdot reader saccade.com. TechCrunch reports: "Google and Facebook and Amazon are tremendously powerful at online advertising because they're integrating so much data from so many sources. There's a business cost to that, but that makes the advertising more targeted and effective. So I think those three are going to get most of the online advertising business," Netflix CEO Reed Hastings said. To grow a $5 billion to $10 billion advertising business, you'd need to "rip that away" from the existing providers [such as Facebook, Amazon Google], he continued. And stealing online advertising business from [them] is "quite challenging," Hastings added, saying "there's not easy money there." "We've got a much simpler business model, which is just focused on streaming and customer pleasure," he said. The CEO also noted that Netflix's strategic decision to not enter the ad business has its upsides, in terms of the controversies that surround companies that collect personal data on their users. To compete, Netflix would have to track more data on its subscribers, including things like their location -- that's not something it's interested in doing, he said, calling it "exploiting users." "We don't collect anything. We're really focused on just making our members happy," Hastings stated. "We think with our model that we'll actually get to larger revenue, larger profits, larger market cap because we don't have the exposure to something that we're strategically disadvantaged at -- which is online advertising against those big three," he said. TechCrunch points out that Netflix does track viewership data, overall viewing trends, and users' own interactions with its service. It also recently introduced a new "chose to watch" viewership metric. "However, none of this viewership tracking is on the scale of big tech's data collection practices, which is what Hastings meant by his comment," the report says.

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