Netflix is testing out ads, but here’s the good news
Equity Research managing director David Miller explains why he is bullish on Netflix.
Netflix sets the record straight about its new “commercials.”
On Friday, news that the streaming giant is testing out promotional videos between episodes and movies caused an uproar on Twitter and Reddit, with many users threatening to cancel their subscriptions if it persists.
But the popular streaming service immediately cleared the air with its customers releasing a statement saying that it is only testing “whether surfacing recommendations between episodes helps members discover stories they will enjoy faster.”
It also noted that members will be able to “skip a video preview at any time if they are not interested” and reiterated that these breaks are not ads or commercials, but personalized recommendations for other Netflix programming.
However, a few Reddit users claimed that the new promotional videos were not entirely skippable.
A Netflix spokesperson did not immediately respond to FOX Business’ request for additional information regarding the new promotional videos and how long the test will last.
In 2016, the Los Gatos, California-based company launched a similar video preview tactic that played promotional videos while users browsed. Netflix said that the new addition has helped people cut down their browsing time “significantly.”
However Netflix, which has about 130 million customers worldwide, says it runs hundreds of tests a year and most of them are never adopted.