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Netflix Is Experimenting With Advertising

derekmead writes: Netflix is experimenting with pre-roll and post-roll advertisements for some of its users. For now, it's just pitching it's own original programming. However, many are concerned that they plan to serve third-party ads, but the company says they have no plans to do so. They told Mashable in a statement: "We are not planning to test or implement third-party advertising on the Netflix service. For some time, we've teased Netflix originals with short trailers after a member finishes watching a show. Some members in a limited test now are seeing teases before a show begins. We test hundreds of potential improvements to the service every year. Many never extend beyond that."

51 of 318 comments (clear)

  1. In other words by MightyMartian · · Score: 5, Insightful

    In other words, within a year or two we will be rolling out ads that you will be forced to watch before you can view the programming you pay a subscription fee for.

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
    1. Re:In other words by JMJimmy · · Score: 5, Insightful

      In other words, I'll be moving to the next service that does not advertise. Or just torrent/stream (with adblock of course).

    2. Re:In other words by tepples · · Score: 2

      I seem to remember reading speculation that Hulu would have to charge $20 or more per month for ad-free service in order to pay for its infrastructure and royalties.

    3. Re:In other words by Anonymous Coward · · Score: 5, Informative

      Exactly, the reason I pay them is to avoid the shit.

      Netflix, this is the quickest way you can loose customers.

      I stopped buying DVDs because of the forced trailers which are completely meaningless 6 months later and are just plain bloody annoying after that.

      Maybe...just maybe actors etc are not worth the millions you pay them. Perhaps that is the "New" business model where Millions of dollars can be saved.

    4. Re:In other words by jamesdood · · Score: 2

      That will get me to cancel my subscription, I don't need to watch most of the crap on there anyway and I gladly pay other services to NOT have to endure advertisements, we are constantly bombarded enough so any escape is good!

      --
      *narf!*
    5. Re:In other words by Vitriol+Angst · · Score: 2

      They'll suck like Hulu.

      I mean damn,... experiment with not trying to wring ever escalating profit margins. Netflix is awesome -- and will get better with more original programming and the flood of Indie films that will go direct to web soon.

      Adding commercials will just mean the same old suck of network television. The News Media already works for the people paying for the commercials -- not to inform the public. Netflix, your early adopters are the people who fled the lowering bar of network and cable TV.

      --
      >>"ad space available -- low rates!!!"
    6. Re:In other words by Anonymous Coward · · Score: 4, Insightful

      This. I'm a loyal Netflix subscriber but if they start to run ads, I'll go back to torrents so fast it'll make their heads spin.

    7. Re: In other words by AvitarX · · Score: 5, Interesting

      I really hope they don't do pre show ads, hbo does it, and it's a huge pain.

      It's doubly a pain to see the same ones when binge watching.

      I understand why hbo does this, they need to alert you to new content to keep you interested, but Netflix already does this on the home screen. They don't need to do ads, even for content I want to know about, before I watch something (I'm fine with it afterwards).

      --
      Wow, sent an e-mail as suggested when clicking on "use classic" banner, and got a fast response that addressed my msg
    8. Re: In other words by Mashiki · · Score: 4, Insightful

      I'd be up for it if they cut the price by 50% for those that are willing to see them, otherwise they can take their ads and shove them up their ass.

      --
      Om, nomnomnom...
    9. Re: In other words by Qzukk · · Score: 5, Insightful

      It's doubly a pain to see the same ones when binge watching.

      Those are absolutely the worst. Watching the same preview the second time is almost as bad as when I pull out a years old DVD and have* to sit through ancient trailers before I can start watching the movie. By the third time I see the same preview the same day, it's worse.

      *: or use a non-compliant DVD player that allows skipping this shit. Either/or.

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    10. Re: In other words by JMJimmy · · Score: 5, Insightful

      I'd be up for it if they cut the price by 50% for those that are willing to see them, otherwise they can take their ads and shove them up their ass.

      That's the slippery slope that led to Cable TV.

    11. Re:In other words by Anubis+IV · · Score: 5, Interesting

      Bingo. I've had an account on Hulu since it was back in closed beta, but I never "upgraded" to their for-pay Hulu Plus service because they don't remove the ads. It's just there for when I feel like having something running on the second monitor and don't really care what it is. I don't care about watching the latest and greatest, so Netflix has me covered with years of content that I'll never get through fully. If Netflix stops being awesome, I'll hop over to Amazon, iTunes, Google Play, the rumored YouTube paid subscription, or one of the other services that competes in this space. If those end up being too costly or not-awesome, I'll simply start playing more games and working on more side projects.

      At this point, I really don't tolerate paying places that treat me as anything other than a valued customer. As it is, for $5-10, I can...
      1) Enjoy a 40-hour game from Steam.
      2) Enjoy a film or two at the local theaters (yes, it's that cheap here).
      3) Enjoy two or three rented films via streaming.
      4) Enjoy an entire month of ad-free Netflix.
      5) Enjoy a multitude of snacks while coding for fun.
      6) Enjoy a light meal with friends.
      7) Waste 20-25% of my time watching ads on Hulu for content I would have already paid for.

      One of those is not like the other. Netflix is not just competing against Hulu, and they need to remember that. They're competing against every other hobby their users have. Right now, they treat me well and do so for a good price, but if Netflix wants to join Hulu in treating their customers as their products, then I'll gladly say "bon voyage".

    12. Re: In other words by praxis · · Score: 3, Informative

      I would.

    13. Re: In other words by Mashiki · · Score: 3, Insightful

      That's the slippery slope that led to Cable TV.

      Really? Somehow it seems that it was the cable co's saying one thing, and doing something completely opposite. That's not a slippery slope, it's outright lying.

      --
      Om, nomnomnom...
    14. Re: In other words by mjwx · · Score: 2

      I'd be up for it if they cut the price by 50% for those that are willing to see them, otherwise they can take their ads and shove them up their ass.

      They'd need to cut the price by 100% for me to accept ads.

      --
      Calling someone a "hater" only means you can not rationally rebut their argument.
    15. Re: In other words by slickepott · · Score: 3, Informative

      Yes I would.

    16. Re: In other words by Teckla · · Score: 2

      would you pay more for an ad-free Netflix?

      I would rather pay more than have ads.

    17. Re: In other words by Darinbob · · Score: 4, Informative

      No, Cable TV kept raising the price by 50% even with the advertisements.

    18. Re:In other words by Darinbob · · Score: 3, Insightful

      But we're ALREADY paying Netflix. They don't need ad revenue to fund their servers, they're not just some wannabe journalist blogger whining about the lack of donations. Advertisements plus a subscription is just stupid, or evil, or both. Same with cable tv, but there we could easily fast forward past the ads and never see them (the evil ad industry even sued replaytv over this capability).

      Post-show ads are ok, we can skip those. Ads on their homepage is fine. They can even have a special "Netflix Originals" category (which I suspect some people would like). But non-skippable pre show ads would drive away a non-trivial segment of their subscribers, including quite a lot of people who decided on Netflix over Hulu-Plus.

      Netflix needs to remember that we cut the cord once already, we can cut it a second time if needed. People are assuming we must watch the shows, but it's not true and we've learned to cut back. Anyone already using torrent is probably not concerned about being legal with netflix anyway.

    19. Re: In other words by the_Bionic_lemming · · Score: 5, Insightful

      Same here. I pay Netflix for ad free viewing.

      I will stop paying for netflix when it's not ad free viewing.

      Ads are meant to pay for shows. I should not be forced to pay to watch ads.

      We cut the cord because of ads - not because we're willing to pay for ad free content. If comcast served up all of its content adfree - I'd jump right into comcast.

      It's that simple.

      Free TV can have ads.

      Commercial free tv can charge for content.

      This is what the consumer wants.

      --
      _ _ _ Go for the eyes Boo! GO FOR THE EYES!
    20. Re:In other words by KGIII · · Score: 3, Informative

      That is why I do not subscribe to Hulu. I tried it for a month but still got ads so I canceled. I stopped watching television because I dislike the ads and the limited content was not justification for watching the ads. I will cancel my Netflix account if this happens to me. That was not what I agreed to when I joined right after their inception. I recall skimming (not reading all of it) their ToS and I do not recall that being subjected to ads was a part of it.

      --
      "So long and thanks for all the fish."
    21. Re:In other words by kuzb · · Score: 3, Funny

      "Netflix, this is the quickest way you can loose customers."

      Are they going to start firing them from catapults? I would be strongly against this!

      --
      BeauHD. Worst editor since kdawson.
    22. Re: In other words by Archangel_Azazel · · Score: 2

      Nice streaming service you've got there. Be a shame if someone were to start running ads and muss it up, now wouldn't it? You just pay Jimmy here the extra dough every month and we'll make sure nothin' happens to ya.
      -Rudy "The Transmitter" Giovanni

      --
      Your mind is like a parachute. It works best when it's been opened.
  2. I remember when... by linear+a · · Score: 3, Insightful

    Ah ... I remember when cable TV started putting ads in. Didn't turn out pretty.

  3. No by Imagix · · Score: 4, Insightful

    Just, no. Slippery slope. It starts with ads for it's own stuff. Followed by ads from "selected" partners. I've paid my subscription fee. No ads.

  4. I could live with a post-show teaser... by Radical+Moderate · · Score: 2, Interesting

    ...provided they don't show the same damn one every time. I find a lot of good shows through the "Recommended for You" category, if they teased one of those I'd be OK with it. But it's a slippery slope. You kids won't believe this, but used to be we didn't have to sit through half an hour of commercials in movie theaters, they even showed cartoons before the movie. And my lawn, get off it.

    --
    Never let a lack of data get in the way of a good rant.
    1. Re:I could live with a post-show teaser... by ghjm · · Score: 3, Insightful

      And my axe. Get off it also.

    2. Re:I could live with a post-show teaser... by TapeCutter · · Score: 3, Insightful

      Yep, I grew up in a country town that is now an outer suburb of Melbourne. Saturday afternoons was the "$0.20 children's matinee" at the local theater, first we got a couple of cartoons, then everyone stood quietly to attention for "god save the queen", then John Wayne would come on and there was a roar of delight from the crowd, then we all start playing cowboys and indians in the theater. The adult staff did not try to control our behaviour, except to make sure we all stood quietly for the national anthem ( if you were silly enough to be sitting down an usher would come over and lift you to your feet by your ear), no child was ever thrown out, and we took full advantage of that policy. :).

      Somewhat ironic that my first memory of "freedom".is being locked in a large padded room with 100 kids and John Wayne. Still, it worked out great from a social POV, everyone shopped on Saturday morning because the shops were closed Saturday afternoon and all day Sunday, so after "shopping with the kids", the kids got to burn off their energy and mum and dad got a quiet afternoon to restore theirs.

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
  5. Google Play, Netflix by DoofusOfDeath · · Score: 4, Insightful

    Google Play placed ads at the beginning of Archer episodes. It pissed by off considerably. I pay good money to NOT see commercials. Being force-fed ads when I paid for something (a movie ticket, a Google Play video, etc.) is about the surest way to get me to stop paying you money.

    Seriously, fuck you Google. And if you do this, fuck you Netflix too.

  6. Just in case this isn't very clear: by xtal · · Score: 5, Informative

    We will HAPPILY PAY MORE MONEY if you explain your circumstances.

    We do not want to watch ads. Full up.

    Thank you.

    Sincerely,
    The Internet.

    --
    ..don't panic
    1. Re:Just in case this isn't very clear: by Stan92057 · · Score: 2

      We? speak for yourself

      --
      Jack of all trades,master of none
  7. Re:Exactly. by Anonymous Coward · · Score: 5, Insightful

    It's not fucking entitlement, it's recognizing what you're paying for. ADS for a PAID SERVICE is DOUBLE DIPPING. Full stop. Cable is just as scummy, and the only reason the companies get away with it is that TV is a widespread addiction stronger than heroin.

  8. Re:Exactly. by ArchieBunker · · Score: 5, Insightful

    Maybe because the original intent of cable tv was you paid a subscription which pays for the shows. No advertisements needed. The big networks still broadcast over the air for free. If you bring in advertising then you clearly don't need my subscription costs.

    --
    Only the State obtains its revenue by coercion. - Murray Rothbard
  9. Re:Exactly. by 0100010001010011 · · Score: 5, Insightful

    cable tv you see ads.

    You know Cable TV started on the premise of "no ads", right? Now they have nothing but ad channels. The 80s were a glorious, ad free, time all supported by your monthly payment.

  10. Re:Exactly. by EmeraldBot · · Score: 2

    I cannot comprehend this entitled attitude. on cable tv you see ads. in a magazine or newspaper you see ads. before movies you see ads. during movies you see ad placements. so it's not like Netflix is proposing a crazy new concept, to show you an ad even though you pay a subscription. why so angry bro?

    I wouldn't want to see ads on TV either; it's the big reason that a lot of people (myself included) switched away from regular TV service. In a magazine or a newspaper, I can easily skip right over those ads, and they tend to actually be useful services in the case of a newspaper - plus, I don't have to see the same one over and over again. During a movie theater is ridiculous, and I don't often go to them for that reason (aside from the outrageous concessions pricing).

    Just because everyone does it doesn't make it right. The difference though is that the other methods aren't so obnoxious and atmosphere-breaking, and tend to be more informational. The exception is Cable TV, and like I said, I wouldn't touch that with a meter length pole. Especially not given that it's many times the price of a Netflix subscription...

    --
    "Set a man a fire, he'll be warm for the rest of the night. Set a man afire, he'll be warm for the rest of his life."
  11. Re:Exactly. by HairyNevus · · Score: 2

    Magazines and newspapers have ads so they can remain dirt cheap (which they need to do to ensure high viewership [of the ads...]). Also, those ads don't block the actual content, you just flip the page. Movie trailers (previews) are totally fine, and part of the movie-going experience. I do think car commercials and the like played on the big screen before a film is bullshit and one of the reasons I don't go as often as I used to. Commercials between T.V. shows is another fact of life, but not on HBO or Showtime etc. That's what this is most like, but right now since it's just previews for Netflix originals it's not much worse than HBO previewing their other shows for 20seconds before streaming on HBO GO*.

    *which is actually really stupid. I'm going to watch all of your new shows when you release them, that's why I fucking subscribe!

    --
    You were critically hit for no damage. The bruise will look nice, and maybe the scars will make good party talk.
  12. Re:Exactly. by countSudoku() · · Score: 2

    He's got a point; "why adverts in a stream of media I'm paying for?" Not entitled at all. I take the same stance. If I'm paying for media, I do not expect to see adverts, however, yes, they do inject them into my pay-for Dish subscription, along with some shitty channels I did not ask for. Easy enough to fix in these ways; DVR FWD through the adverts, sound kill the adverts and then do not pay attention to them, and my favorite switch to another source during adverts scheduled on my live show. For channels, I just do not add them to my custom guide, then when I see the trolls at the electronic stores asking me to "save big by switching to their dubious service" I ask this question; where are my al la carte channels? This usually shuts them down cold. The channel packages are the shit they push, and they are anti-consumer by not letting us pick the channels we wish to subscribe to. It's a fucking con job. So, I choose to avoid all their adverts AND reserve the fair use right to copy my media down to another device that I manage. Not some fucking corporate media overlords.

    I don't know of one sane person who thinks advertising is worth the millions of $$ that companies spend on it. Consider this; if there were no adverts would you still be able to discover new products to purchase? Of COURSE you would! I find new shit on Amazon every time I visit! No one needs to force feed me any adverts for this to occur. In fact I go out of my way to boycott products I find too often in my media stream. Period. I adblock right at the consumer level. Other than lawyers, advertising people are the lowest forms of scum in this sector. Fucking useless air-wasters, every single one of them.

    --
    This is the NSA, we're gonna geet U h@x0r5! Also, what is a h@x0r5?
  13. Re:Exactly. by Mr.+Slippery · · Score: 2

    I cannot comprehend this entitled attitude. on cable tv you see ads. in a magazine or newspaper you see ads. before movies you see ads. during movies you see ad placements. so it's not like Netflix is proposing a crazy new concept

    I cannot comprehend this apathy about the ongoing invasion of every bit of space and time by attempts at mind control. ("Buy! Buy! Buy!")

    Once upon a time you actually could pick up some magazines and see very few ads, or even none at all. There were not ads before movies. Product placement was inconspicuous or non-existent. There was even less ad time on broadcast TV -- one guy estimates that the time spent on commercials more than doubled since the 1950s.

    Ads as we know them are memetic toxins. Anyone unconcerned about them is unconcerned about their own mind.

    --
    Tom Swiss | the infamous tms | my blog
    You cannot wash away blood with blood
  14. Re:Exactly. by Registered+Coward+v2 · · Score: 2

    I cannot comprehend this entitled attitude. on cable tv you see ads. in a magazine or newspaper you see ads. before movies you see ads. during movies you see ad placements. so it's not like Netflix is proposing a crazy new concept, to show you an ad even though you pay a subscription. why so angry bro?

    Perhaps, but I subscribe because I get ad free programing. if they want to show ads thats fine, I'll just move on to something else. I'm not angry, just voting with the wallet.

    --
    I'm a consultant - I convert gibberish into cash-flow.
  15. Netflix Is Experimenting With Advertising by Snufu · · Score: 3, Insightful

    Bye Netflix. It was fun while it lasted.

  16. "We are not planning to" != "We do not intend to" by QuietLagoon · · Score: 4, Interesting

    How many times have companies told us that they do not plan to do something, only to do it a year or two later?

  17. Re:Exactly. by ShaunC · · Score: 2

    I haven't paid for a magazine or newspaper subscription in at least 10 years. Companies like Mercury Magazines and FreeBizMag exist to put eyeballs onto print magazines and papers. Popular Science, Popular Mechanics, Field & Stream, Flying, I get those for free and have had various others over the years. In exchange, I encounter a few easily-skipped ads for Viagra, Harbor Freight, Sporty's, and Dr. Winnifred Cutler's Athena human pheromone love potion. I used to get the WSJ tossed into my yard every morning for free as well, but found I didn't have the time to read it, so I cancelled.

    I wouldn't pay to get any of those with ads. I might pay to get them without, but they don't offer such an option, they sold their souls to advertising.

    --
    Thanks to the War on Drugs, it's easier to buy meth than it is to buy cold medicine!
  18. The difference is I have options now by rsilvergun · · Score: 2

    Video games. DVDs. On demand video. Audio books. Heck digital books if I'm willing to work for my entertainment :P. But There's lots and lots of content out there.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
  19. Re:Exactly. by lordofthechia · · Score: 2

    Just because advertising has infected other mediums, doesn't mean that advertisers are entitled to infect everything.

    Leela: Didn't you have ads in the 21st century?

    Fry: Well sure, but not in our dreams. Only on TV and radio, and in magazines, and movies, and at ball games... and on buses and milk cartons and t-shirts, and bananas and written on the sky. But not in dreams, no siree.

    --
    Georgia Tech, the leader in Chia(tm) technology.
  20. Re:What about product placement ads? by fostware · · Score: 2

    I think there was an entire season of Bones with scenes where they talked about the features of the car. Normally car rides on TV are for explanations or mundane problem solving sessions, but this was just cringe worthy. It went from background TV to never being watched again...

    --
    "We know what happens to people who stay in the middle of the road. They get run over." - Aneurin Bevan
  21. Re:Exactly. by Darinbob · · Score: 2

    They have competition. Hulu-plus has ads, and a lot of people went to Netflix instead for that reason. There's Amazon, I'd never touch it myself but I know people who swear by it (mostly those already addicts to online shopping so that they think it's free). I even know people using iTunes for this, but like Google Play that's really a separate market and is pay-per-show rather than a subscription service.

  22. Re:Exactly. by Darinbob · · Score: 2

    And Netflix streaming exists for the most part from customers who cut the cord and dropped their cable and satellite. They should remember that their customers are already a fickle bunch.

  23. Re:Exactly. by mellon · · Score: 3, Informative

    Noah, what it is is simply a different service. I subscribe to Netflix because I can watch stuff I want to watch without having to sit through ads. Full stop. That's the service I'm buying. If Netflix starts pushing ads, they have stopped selling the service I want to buy. If they jack up the price without ads, and it's not an unreasonable hike, I'll pay it, because I like the current service. And you are wrong that ads aren't an inherently evil business model. They very much are: the point is to get you to do something that is against your interests. It's like when you ask a girl if she wants to go out with you, and she says no, and you keep asking her hoping she'll give in. Not cool.

  24. Don't push your luck by nehumanuscrede · · Score: 2

    The quickest way to go bankrupt would be to screw over your customer base.

    Everyone using Netflix does so because we've had it with the bullshit dished out by the big players. ( cable, satellite, uverse, etc )

    We don't want the GD ads. Why is this so difficult to grasp ? The whole POINT of paying for content is so we don't get harassed with advertising every ten fucking minutes. It's so bad we now go out of our way to avoid or actively filter it. That alone should tell you something.

    Believe me when I say your bandwidth / peering problems will go away almost overnight when you start putting in ads because you'll probably set a world record for customers lost in shortest amount of time.

    Don't say we didn't warn you. . .

  25. Re:Exactly. by chihowa · · Score: 2

    It's like when you ask a girl if she wants to go out with you, and she says no, and you keep asking her hoping she'll give in. Not cool.

    It's like when you ask a girl if she wants to go out with you, and she says no, and so you hire a team of psychologists to help you manipulate her into saying yes.

    It's not really any less creepy when ad companies do it to get you to part with your money.

    --
    If you want a vision of the future, imagine a youtube comments section scrolling - forever.