Netflix is an on-demand Internet streaming media company. Netflix provides you with television shows, documentaries and movies. The items provided are old and new. This is all done through the Internet. All you need is a connection and the content will be provided for you. The company is at an all time high in valuation. And from the looks of it, the sky is the limit as to how high the price of the stock will go. It is still a good investment if you can afford to buy the stock. The reason this article is being written is because Netflix maybe ignoring a crucial market in their hemisphere. That market is the portion of customers who do not want to pay for television or movies for that matter. If you think about it, they do not want to pay for any content.
These people are currently customers to network television. They are also begrudgingly customers to paid content through cable and satellite television. These people do not mind watching commercials. Let me repeat that. These people do not mind watching commercials. As long as they do not have to pay, they are okay with the content they receive. Usually, a company would have to research this but the evidence already exist. The networks have proven that the model works. It is said that television advertising is a sixty five billion dollar business. Now, the question is how does this pertain to Netflix.
What if Netflix were to approach this as a two tiered solution? Netflix could continue to offer content in it's original format. The format that we are all familiar with. A second tiered approach could be that Netflix offers a free service with commercials. The networks are already doing this on the Internet. I have watched all my favorite shows from ABC, CBS, NBC and FOX on the Internet and they all have commercials. It does not bother me in the least. Netflix would have to change in some regards to accomplish this. But, it is achievable and the profit in doing so is there. Something else Netflix should take into consideration is that this would reduce the pirating of its content. People using other peoples Netflix password to access programming would greatly be reduced. Some say that the way the networks do business is dying because people do not want to watch commercials. I say maybe the model still exist. It may simply be migrating to the Internet. If given a choice of watching commercials or paying $150.00 per month to watch television, I'd watch a reasonable amount of commercials with my television programming.
These people are currently customers to network television. They are also begrudgingly customers to paid content through cable and satellite television. These people do not mind watching commercials. Let me repeat that. These people do not mind watching commercials. As long as they do not have to pay, they are okay with the content they receive. Usually, a company would have to research this but the evidence already exist. The networks have proven that the model works. It is said that television advertising is a sixty five billion dollar business. Now, the question is how does this pertain to Netflix.
What if Netflix were to approach this as a two tiered solution? Netflix could continue to offer content in it's original format. The format that we are all familiar with. A second tiered approach could be that Netflix offers a free service with commercials. The networks are already doing this on the Internet. I have watched all my favorite shows from ABC, CBS, NBC and FOX on the Internet and they all have commercials. It does not bother me in the least. Netflix would have to change in some regards to accomplish this. But, it is achievable and the profit in doing so is there. Something else Netflix should take into consideration is that this would reduce the pirating of its content. People using other peoples Netflix password to access programming would greatly be reduced. Some say that the way the networks do business is dying because people do not want to watch commercials. I say maybe the model still exist. It may simply be migrating to the Internet. If given a choice of watching commercials or paying $150.00 per month to watch television, I'd watch a reasonable amount of commercials with my television programming.
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