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Netflix rejects advertising on its platform

"Netflix needs to diversify and look at different business models," analyst tells TVBEurope

Netflix has ruled out the possibility of launching an ad-supported version of its platform, citing data privacy as a primary concern.

Commenting on the rise of Google, Facebook and Amazon, Netflix CEO Reed Hastings said: “We’ve got a much simpler business model, which is just focused on streaming and customer pleasure.

“We want to be the safe respite where you can explore, get stimulated, have fun, enjoy, relax — and have none of the controversy around exploiting users with advertising.”

Paolo Pescatore, tech, media and telco analyst at PP Foresight, told TVBEurope: “Netflix needs to diversify and look at different business models. I’m not sure advertising is the answer as it detracts from the overall service and user experience. People pay a subscription for a video service with no ads.

“Also, it’s a tough market to compete in with far stronger players with deeper pockets than Netflix. Arguably it makes more sense to move into other services.”

The company posted strong quarterly earnings of $5.47 billion, slightly above the $5.45 billion predicted by analysts. However its 420,000 new customers fell short of the 600,000 it had predicted.

The revenue report was Netflix’s first since Disney Plus launched in the US, where it signed up 10 million customers on its first day.