Reed Hastings, chief executive officer of Netflix, said in a Facebook post on Monday: “No advertising coming onto Netflix. Period. Just adding relevant cool trailers for other Netflix content you are likely to love.”
Recently, Netflix, the subscription video-on-demand TV and movie service, has been running what looks like commercials before some TV and movie content. But those entertainment messages are just TV and movie promos for other content on the service.
Business analysts and media agency executives have wondered for some time whether Netflix would ever take on some sort of advertising model -- limited or otherwise -- in pursuing growth.
One senior media agency executive recently asked the question in an interview with MediaPost’s TV Watch: “When will Netflix start taking TV advertising?”
Many Wall Street analysts are concerned about growing costs. Netflix will spend $5 billion in programming next year -- more than HBO, Showtime, Amazon, and Starz spent on programming in 2014, combined.
But other business observers say rising global subscribers could handle much of this. One analyst estimates Netflix could grow by triple in five years to a massive 180 million worldwide customers.