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Originally Posted by spiderplant
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I’m pretty sure that income from advertisements on Netflix was not in the original business plan.
I believe you had a point about the difficulty in including ads in the stream, but I don’t think Netflix wanted to incorporate ads when it started off. I think they probably thought that global income would more than cover their costs and make them a nice handsome profit. Either that was a miscalculation, there was too much uncontrolled expenditure on content or perhaps they didn’t anticipate the amount of competition there would be with all these other streamers getting in on the act.
But a cheaper or free ads option was an obvious step to take as the market started to mature.