I'm sure Netflix will start once revenue starts slipping.
I can see Netflix looking to a similar model in the future. What are they at now, $12.99? I can see the current base subscription going to $14.99, while simultaneously launching an ad-supported version priced around $7.99.
Edit: Netflix actually DOES offer a cheaper $8.99 plan currently. This one is restricted to one screen at a time, and does not offer content in HD. So if they stuck ads on it, maybe they could bring the price down to like $5.99.
So the only way they can make an ad-supported Netflix work is to create some form of much more effective ad (which usually means taking more of your data) or attract a very specific high value audience (makes them too much of a niche player for their size)
I think Hulu is showing at least 5 minutes of ads per 22 minute program, so watching two hours of programming would exceed the ad time you mentioned. This is reasonable for a single day, but a high bar for a daily average.
Hulu has literally half a dozen old shows that they are contractually required to show an ad in front of or take down entirely. The vast, vast majority of users on the service will never see one.
It's a very different scenario to a company actively looking to increase advertising.
As for cable-style interstitial commercials, though, the only way I could see Netflix ever doing that is if the company were to enter a Blockbuster-level tailspin. It would be selling off the core Netflix experience just to stay afloat.
Stupid semantic arguments about whether it is an ad are not are completely irrelevant to the fact that I don’t want to see content I did not pick.
No commercials on Netflix.
I"m sure they do product placement and other marketing stuff, though.
Except that some people are replacing their cable with Netflix. So it is, in fact, a "cable replacement" for those people.
From the GP's comment, it's clear that the reference was to actual "cable replacement services."
And like others have said, people are using Netflix to replace cable - and as such, it is a cable replacement. It isn't difficult to get some live news from major services (BBC, for example) or get some local news from local sources. I don't know much about sports as I've never really watched them - but I know in some places, you need a fairly special cable package to have good access and that sometimes, a disagreement between the networks and the cable company will keep them from you. Using sports as a marker seems pretty flimsy.
I'll admit this was only on a few networks and maybe only certain programs, but overall it was a pretty poor experience.
Anyone who watches Hulu has heard "will play with a commercial before and after the show". Hulu has been increasing the number of ads they include. It used to be ad free for many shows. Then they went to 30 second ads. Now they're stuffing 180 seconds or more on many shows.
> higher quality (arguably) shows
Definitely arguable. My feeling is the quality is going down quite a bit, but I think that's because the demand for content volume has increased (in the era of binge watching, a single TV series is started and over in one weekend).
> Additionally, it’s possible to just subscribe to the one service you really like because they all have a lot of content.
This might be true now. But there are multiple high profile streaming services launching in the next year (e.g. Disney+), which is prompting Disney to pull all content off other platforms.
Ad tiers of streaming services are really cheap (approaching zero over time), so if we are looking at those, then the cost of a bunch of them is less than cable equivalent and don’t need to be better (even though they are.)
Which is sad because there are plenty of better things to do than TV. I love shows as much as the next person, but if streaming really does morph back into Cable, I will just end up watching little to no TV and pirating anything I must see, which is rare. I'm already most of the way there anyhow. Life's too short for modern brainwashing via advertising. Vegetation is death.
Marvel/Disney/Star Wars/Simpsons... I’m good for awhile.
And yet Amazon Prime insists on showing me ads for their other shows before I can watch the one I actually tapped on to watch. Or the next episode of the show I'm watching. It really diminishes the value a lot.
I vastly prefer the experience of Netflix.
Prime Video simply feels like a bad Chinese knockoff of Netflix.
Ohh you sweet summer child... Cable was the same way when it launched. Everyone knows how this ends.
No, but instead a pretty bad attempts at suggesting content because you happen once to watch xyz out of no reason.
> more shows
If you live in country that happens to have license agreements done well - there's still lot of content I am unable to see on Netflix in Poland because someone holds license rights for the show or movie. I'd like to see older movies, tv series - things I grow up with but instead I'm being constantly flooded with new stuff that I'm not fond of (not mention that damn autoplay preview in "header" part of Netflix in both site and applications; I really wish there would be a way to disable that "feature").
We got a la cart purchase power. Now we just need to bring our own devices for each service.
I've been a long time Roku fan, and for now it can stream everything I want (though there was a time where I needed a Chromecast to get YouTube). When will the battling streaming services change that though?
[1]: http://cdixon.org/2012/07/08/how-bundling-benefits-sellers-a...
Now that streaming has gone from experimental status to mainstream adoption status, it now has the same pressures to deliver profits above all else. What is the customer going to do, go back to cable TV?
Netflix/Hulu have become successful in part because they undercut cable with lower subscription fees and fewer commercials.
It makes sense that once streaming becomes the dominent mode of television consumption, with traditional cable pushed out, that they begin to adopt some of the more aggressive value extraction mechanisms as did traditional cable service.
I predict the same will happen, or perhaps it's already beginning to happen, with Amazon in the retail sector (Amazon is providing more value for less money compared with traditional retail, which is causing retail chains to close shop, which will lead Amazon to discover new ways to extract new value once brick/mortar chains are gone and no longer competing).
But, that is capitalism.
Why is that?
For years, I heard people saying "I just wish I could get ala carte cable". Well, the future is now.
Really? How can I buy the shows & movies I want and literally nothing else?
The license generally does pass along with your purchase account when you die.
Why is this a need? The minimum unit you can purchase is a month of service. You are free to subscribe and unsubscribe as many times as you want. I'm not aware of a single service that costs more than either a single movie theater ticket or a single newly released Blu-ray/DVD. So you are free to subscribe to HBO watch Game of Thrones, cancel HBO, subscribe to Netflix, watch BoJack Horseman, cancel Netflix, subscribe to Amazon, watch Marvelous Mrs Maisel, cancel Amazon, and so on. That is much more control and choice than cable subscribers had a decade ago. We don't need to make perfect the enemy of the good.