Netflix is our Internet hero of the week for putting user experience in front of 2 billion dollars in additional profit. A recent report by the company Exstreamist ran the numbers and they calculated the profits to be made if Netflix were to start running advertising slots just like traditional broadcasters, they would be netting an additional 2 billion dollars every year. In my opinion this is a smart move by Netflix, as the ability to watch shows ad free is one of the best features of the service. In comparison, watching videos on youtube means dealing with the skip ad button every few minutes. Even my 3 year old son knows exactly how to get rid of that pesky ad that interrupts his peppa pig show.
Now, over 2 billion in additional revenue is not chump change, so I expect there will be some strong words spoken at the board of director meetings at Netflix. I hope they weigh in the potential loss of customers against the increase in revenue moving forward. The fact that Netflix is ad free, their service is very economical, and they are pumping out some really high quality original content, like House of Cards, Stranger Things, or the new Riverdale show based on the old Archie comics with a definite adult spin, it's really no surprise that Netflix tops the list of everyone's favorite internet company for several years running. So if you're not a Netflix junkie yet, you should definitely check it out, and as always tune in Friday mornings for Reality Bytes tech talk!!