The Case for Netflix to Add an Ad-Based Tier

There are extremely compelling reasons to consider diversified revenue streams. Expanding revenue beyond ads allows for the simple fact that people’s preferences change. Digital marketing experts estimate that Americans are exposed to around 4,000 to 10,000 ads daily. There is a point where you can no longer stuff more ads down a consumer’s throat;... See more

For context, the cable networks business is one of the most profitable industries in the U.S.; it represents the vast majority of major media companies’ profits; traditional TV networks revenue growth is, for the first time, stagnating; and traditional TV is far larger than the streaming market — roughly $100 billion in TV network affiliate fees an... See more

Netflix was the biggest source of Web traffic in the United States, despite losing all those customers during the Qwikster crisis. Through its streaming video service, it accounts for a massive chunk of all Internet traffic in the United States, at roughly 20 percent. Consider that the next time someone tells you the cloud isn’t for big enterprises

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