In a letter to investors this week, Netflix confirmed that they are remaining free from advertising on their platform, and have no intention of adding advertising any time soon. The letter said:

"We, like HBO, are advertising-free. That remains a deep part of our brand proposition; when you read speculation that we are moving into selling advertising, be confident that this is false."

"We believe we will have a more valuable business in the long-term by staying out of competing for ad revenue and instead entirely focusing on competing for viewer satisfaction," (Variety)

What do we make of this?

In light of the recent news that the value of Netflix has plummeted and that their subscription prices have increased, it makes sense that Netflix would want to reassure their subscribers that the platform won't be switching to advertising any time soon. And also it might be a slight attempt from Netflix to hint that the Disney streaming platform could well have advertising - so even if it's cheaper, users will still have to deal with adverts. 

According to the sources, if Netflix were to begin showing advertising on their platform it could be worth an extra $1 billion every year - but they would surely lose subscribers too. 

We'll be keeping an eye on this and hoping that Netflix stick to their word. 

 

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