Why Netflix Remains Adamantly Against Ads

EVAN NIU | January 23, 2020

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The idea of Netflix someday adding advertising to its service remains a perennial topic among investors and analysts. Needham analyst Laura Martin recently renewed her call that Netflix should use ads as a way to subsidize lower price points in the face of intensifying competition, while a separate survey of U.S. consumers suggested that most people would be willing to watch relevant ads if it meant lower prices. Netflix reported fourth-quarter earnings results this week, and CEO Reed Hastings reiterated once again why the streaming specialist won't be adding ads to the revenue mix anytime soon. On the related interview (Netflix doesn't host traditional conference calls), Hastings suggested that expanding into advertising would not be an easy task, since digital advertising is dominated by the likes of Alphabet subsidiary Google, Facebook, and increasingly Amazon.com.

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Spotlight

Cubic Inc.

Cubic is a creative agency that is more than ads and traditional media. Cubic has experience with website design, development, mobile application, social media, traditional print mediums, television and much more. Our strategy approach is to be tactic neutral. Instead we make strategy decisions on how we can best reach your audience. Our mission and our passion are one in the same - produce great creative that increases the value of our Clients' brands. The success of your business is our core interest.

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