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?
2 comments:
Totally agree with your observation. I am thinking of getting rid of my Dish service and the main reason is that I can pull contents of my choice from Netflix and another service like the one I know is JaduTV (Asian Community Box). They even came up with a solution that why to pay for subscription, only pay for the device for once and have the ability to see all on demand for free. The guy who developed this device, same like a gaming console nothing fancy, is now running a multimillion dollar business. No matter they are facing copy rights and other charges but still offering a great service no viewer can deny.
At the end all it matters is to have unique innovative product, to be the first in the market and how you execute your business plan.
As someone who works in public relations for a major cable company, I have to defend my industry. The report from the Diffusion Group talks about what people are "planning" or "likely" to do, but doesn't measure what they've actually done. According to a recent Nielsen report, (http://bit.ly/kAtvba) video viewing is actually up on all platforms, including television. The increasing use of videos online and services like twitter build buzz and can actually lift TV viewing.
That being said, I do think advertising is an obvious next step for Netflix and something I'm sure is just a matter of time before they get to. Hopefully they're focusing on figuring out how to balance the right length and amount of ads that will satisfy advertisers and not annoy viewers.
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