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Netflix reveals it is testing advertising on its service

Netflix, the worldwide subscription media service, has revealed that it is testing advertisements...
Newstalk
Newstalk

11.30 3 Jun 2015


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Netflix reveals it is testing...

Netflix reveals it is testing advertising on its service

Newstalk
Newstalk

11.30 3 Jun 2015


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Netflix, the worldwide subscription media service, has revealed that it is testing advertisements in its online streaming service.

Patrons who currently view the network’s TV shows and movies on Xbox 360 devices may soon be seeing advertisements for Netflix’s own programming at the start and end of streaming episodes and movies. The move has been likened to a similar advertising campaign carried out by HBO, where adverts for original shows are broadcast between programmes.

“We are not planning to test or implement third-party advertising on the Netflix service. For some time, we’ve teased Netflix originals with short trailers after a member finishes watching a show,” a spokesperson said.

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“Some members in a limited test now are seeing teases before a show begins. We test hundreds of potential improvements to the service every year. Many never extend beyond that.”

While Netflix may not yet be planning to introduce commercial advertising to its service, such a move would make the media corporation a serious force to be reckoned with – at the risk of alienating some subscribers. Given Netflix’s powerful recommendation software and understanding of its customers’ viewing habits and preferences, targeted advertising could be a very lucrative move for the company.

In the US, advertising on subscription media services is becoming increasingly common, with Netflix competitors like Hulu Plus already screening third-party commercials before and during TV episodes. 


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