I am sure you will all agree with me that Netflix is a wonderful service. When I first came to the U.S. from Israel and heard about it, I thought to myself "this could never work in Israel" - people would just 'forget' to return the DVD, copy it or the mail service would lose it. I was amazed every time how perfectly the system works. Ever since I got an iPad I find myself using the Netflix app almost every time I travel, or sometimes even when I am sitting in a coffee shop.
What only occurred to my now about this service and why I like it so much is the fact that it doesn't have any of the annoying commercials that usually pop-up every time I am watching a stream online or of course on T.V.. Due to the success of Netflix I recently wondered if Netflix would become even more successful would they compromise and start allowing advertising on their site.
In an article published yesterday in NYTimes Bits Blog "Netflix Helps People Cut Cable Cord, Report Says" by Nick Bilton, turns out many people (as one would expect) have been canceling their cable service favoring watching video or streaming on their home television."The report found that people who use Netflix to stream Internet video to their televisions are twice as likely to cancel, or slim down, their cable television options."
With this in mind, I couldn't help but think what is happening to all this audience, especially for advertisers who mainly advertise on T.V. Will this shift in audience mean even more online advertising? Although the majority of the people surveyed reported economic reasons as their main reason for canceling cable, 34% said that the growing use of online video was their rationale with Netflix being the main content provider.
As Netflix continues to grow, offering its content on a variety of platforms like smartphones, Apple TV and Boxee it is not unlikely that eventually Netflix will open up for advertisers. I would be interested to hear if you agree with me, do you think online advertising would eventually 'hit' Netflix as well?
