Will We Start Seeing Ads on Netflix?
Netflix shares saw a handy gain in Monday’s session after it was announced that the online streamer might start advertising other shows on its platform.
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Netflix Inc. (NASDAQ: NFLX) shares saw a handy gain in Monday’s session after it was announced that the online streamer might start advertising other shows on its platform. Instead of breaking up an episode of a show users are watching like we see with commercials on cable TV, Netflix intends to insert these ads between episodes when the credits are playing.
In the past, Netflix has been known to suggest content to viewers and even tests the responses from the users. However, this was not during episodes and most users can browse what’s trending on Netflix on their homepages.
Ultimately, Netflix is testing whether inserting recommendations between episodes will help members discover new content that they will enjoy faster. Netflix was also quick to point out that a member is able to skip a video preview at any time if they are not interested.
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Netflix released a statement to Cord Cutters, saying:
At Netflix, we conduct hundreds of tests every year so we can better understand what helps members more easily find something great to watch. A couple of years ago, we introduced video previews to the TV experience, because we saw that it significantly cut the time members spend browsing and helped them find something they would enjoy watching even faster. Since then, we have been experimenting even more with video based on personalized recommendations for shows and movies on the service or coming shortly, and continue to learn from our members.
Shares of Netflix were last seen up about 3% at $326.60 on Monday, with a consensus analyst price target of $377.38 and a 52-week trading range of $164.23 to $423.21.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
