Stratechery Why Netflix Should Sell Ads
Apr 4, 2022
The discussion kicks off with Netflix's slowing subscriber growth and its quest for new revenue avenues, including the controversial option of ads. The show dives into Netflix's ambitious foray into gaming, aiming to deliver unique, ad-free experiences while grappling with shifting consumer expectations. Finally, it tackles the company's potential pivot to an ad-supported model, weighing the benefits and hurdles of navigating a crowded entertainment market and the evolving attention economy.
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Advertising as a Growth Engine
- Netflix should hire more people to build a new product.
- This product should be advertising-based to increase revenue and subscriber numbers.
Evolution of Netflix's Model
- Netflix's subscription model has served it well, evolving from DVD rentals to streaming.
- However, streaming's limited content library, unlike the vast DVD catalog, presents growth challenges.
Slowing Subscriber Growth
- Netflix's subscriber growth is slowing, partly due to market saturation in regions like US/Canada.
- High prices hinder growth in other markets like India.