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Netflix Officially Adding Commercials

Sir Sebastian Morgan
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Netflix, long praised for its total lack of ads and commercials, is reversing its course on this tradition. Last Tuesday, Deadline reported Netflix co-CEO Reed Hastings saying ads will soon be incorporated into the streaming service in the "next year or two."

"One way to increase the price spread is advertising on low-end plans and to have lower prices with advertising," Hastings said. "Those who have followed Netflix know that I've been against the complexity of advertising and a big fan of the simplicity of subscription."

Hastings, who has always been against the incorporation of advertising in the past, acknowledged that this would be a necessary step in savings the troubled streaming giant.

He also pointed out that commercials will give Netflix subscribers the "consumer choice" and the ability to choose a cheaper subscription, with advertisements.

"But as much as I'm a fan of that, I'm a bigger fan of consumer choice," he continued.

"Allowing consumers who would like to have a lower price and are advertising-tolerant get what they want makes a lot of sense. So, that's something we're looking at now, we're trying to figure out over the next year or two. Think of us as quite open to offering an even lower."

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