Should Netflix start running ads?

Netflix is looking to up its ante and trying to stay profitable amid stiff streaming competition from the likes of Entertainment heavyweights like Disney and Apple.

And one way to ensure its dominance in the market is by making sure it keeps the money flowing at all costs.

Netflix execs, in a bid to resuscitate its revenue streams are looking to introduce ads on Netflix. However, a study conducted revealed that placing ads will only cause damage. Over 23% of respondents in a poll have expressed that they’d ditch Netflix once they start rolling out ads in the near future.

Netflix has long dreamed to bake in advertising into its platform. It sneakily placed ‘non-intrusive’ ads in its own shows with product placements with the permission of the creators with the hopes of making some quick advertising cash. Netflix could face a consequential hit to its number of subscribers if it brings advertising to its streaming service, as per the report.

As of now, Netflix does not run ads, but sometimes products pop up in popular shows. Though it does not accept paid marketing, at times it hires a third-party to assist with product placements at the request of the creators of the show.

Its competitor Hulu tried the same thing, green-lighting ads on their platform. Their ads lasted for 90 seconds and you have to pay an extra $3 extra for no commercials.

One option is to increase the rates of the existing plans that are on offer. But as per the study, 14% of respondents said they would definitely or probably drop their subscription if it were $2 expensive than they currently pay.

Netflix better watch out.

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