TV shows now represent half of what Netflix customers are streaming to their computers, gaming consoles and other devices. It has to be tempting for the company to look at those numbers and think about the cash it could make from slipping a few 15-second ads in during the already existing fade-outs. But, says a Netflix exec, that’s not what the company is all about.
Explains Netflix Chief Content Officer Ted Sarandos to paidContent.org:
We’re not getting into the advertising business, we’re not getting into content creation… The reason cable companies got into content creation was to differentiate themselves from other channels. We don’t need to do that. Our point of differentiation is our ability to provide discovery and personalization.
Streaming services like Hulu Plus still include commercials in addition to charging a monthly fee.
Sarandos also notes that the demand for streaming TV shows far outpaces the demand for TV shows on DVD, which he says has never reached more than 20% of that part of the business.
Digital Home: Netflix Balances The Benefits And Costs Of Broadband [paidContent.org via Hacking Netflix]