SALT LAKE CITY — Industry experts expect Netflix to run ads on its platform eventually, even if the streaming service doesn’t want to, according to CNBC.
Ad executives from YouTube and JPMorgan Chase said during a panel at the Interactive Advertising Bureau’s Digital Content NewFronts that Netflix will soon have no choice but to run display ads on its platform.
Netflix is reportedly recruiting people to help grow the company.
Netflix doesn’t currently run any ads on its platform. But similar services like Hulu have ad-free and ad-supported versions of their sites, CNBC reports.
- “They’re going to need growth. Eventually, they’re going to need more growth,” said Tara Walpert Levy, YouTube and Google’s vice president of agency and media solution.
JP Morgan Chase CMO Kristin Lemkau said consumers wouldn’t mind an ad-supported option.
- “The consumer wants choice and they want something that creates value for them,” Lemkau said. “To the extent that you’ve got this subscription version versus the non-subscription version, consumers will take that tradeoff.”
But she said other big-time television programs don’t work with ads either.
- “It wouldn’t have worked with ads,” she said. “That piece of content, that type of storytelling couldn’t have happened with ads. The army of the dead are at the wall, and we’re still fighting among the houses.”
And, according to CCN, other streaming services are moving away from ads.2 comments on this story
Joshua Lowlock, executive vice president and chief digital and innovation officer of Interpublic’s UM Worldwide, said at the same event that people will eventually want to see ads again, according to AdAge.
- “We grew up in digital, believing we could inject ads everywhere at every moment we could, and that’s why you’ve seen ad blockers and a move to ad-free environments,” he said. “I think there will become a tipping point where ads come back. Netflix is ad-free now. I can’t imagine a world where Netflix will be ad-free forever.”