Netflix is running ads, which it insists aren’t ads

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in movies on (#AABQ)
story imageNetflix has confirmed that it's publicly testing ads (for now just trailers for Netflix-original series) both before and after shows. What you see as a test subject varies in length and whether or not it's skippable, so it's not certain just how tolerable these promos would be. However, Netflix is quick to note that a lot of things are up in the air, and that you might not see these clips at all

However, the ad trial is likely meant to open the door to new pricing options that do more than tweak the number of simultaneous streams. Netflix could offset price hikes (and undercut streaming rivals) by launching a cheaper, ad-supported tier; alternately, it could compensate for slowing growth by asking you to pay more for ad-free viewing.

It's just like Cable TV (Score: 2, Insightful)

by Anonymous Coward on 2015-06-03 17:46 (#ABZ3)

When cable TV was first introduced, we were promised no commercials because the revenue was coming from the monthly fee, and the channel selection would attract more customers and revenue. Well, there were two bad effects from that. First, the content providers very quickly went to commercials, I suppose instead of raising rates, and worse we ended up getting forced to buy content we don't want. Although I dropped cable over 15 years ago, and satellite about 5-6 years later, I never appreciated having to pay for ESPN. I'm sure the programming is fine, but I'm not interested in sports, but there was never an option to not pay for it.

Now Netflix is in the same boat. Obviously, they are looking to generate more revenue, but given that selection isn't a big draw, no commercials is a major feature. If they want to use commercials, they need to offer an option out with a higher-priced tier. I don't watch a lot of movies on Netflix (because the selection isn't so great, but there's a lot of cool older stuff on there), I mostly watch old TV shows (right now I'm reliving "M*A*S*H"), which I really enjoy and find it a great value. I _will_ pay more for no commercials if I have to, and if I can't, I'll consider dropping Netflix.
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