Netflix has started adding promotional content at the start and end of original programming, in a move that has some users concerned that Netflix will start streaming ads to support its rising content purchasing costs.
Selected users watching original shows on Netflix will have noticed the addition of trailers and promos for other Netflix shows tacked on to the start and end of these shows. Netflix currently spends more than $2 billion per year on content purchasing, and some analysts have suggested the need for Netflix to embed advertising into shows, in a way similar to competitor Hulu, in order to raise revenue.
However, Netflix has quickly reassured users that the company's third party advertising policy has not changed. Reconfirming Netflix's commitment to ad-free programming, CEO Reed Hastings was absolutely clear that ads aren't coming to Netflix.
“No advertising coming onto Netflix. Period. Just adding relevant cool trailers for other Netflix content you are likely to love,” Hastings posted on Facebook.
Netflix's corporate's Anne Marie Squeo also says that there are no plans to add advertising to Netflix programming, and that the testing of in-house promos may not lead to these being added permanently to original programming.
“We are not planning to test or implement third-party advertising on the Netflix service,” Squeo said in an email. "We test hundreds of potential improvements to the service every year. Many never extend beyond that."
