Netflix has come out and clarified that it will not be running commercials on its platform. The move follows after netizens called Netflix out after seeing skippable and unskippable videos promoting other shows in between episodes of shows. This also saw said netizens saying they would quit the platform.
In a statement to Marketing, a Netflix spokesperson explained that the company conducts "hundreds of tests every year" to better understand what enables members to easily find something great to watch. For example, it introduced video previews to the TV experience a few years ago as it had significantly cut the time members spent browsing and helped them find something they would enjoy watching quicker.
"Since then, we have been experimenting even more with video based on personalised recommendations for shows and movies on the service or coming shortly, and continue to learn from our members," the spokesperson said. In this particular case, Netflix is testing whether surfacing recommendations between episodes helps members discover stories they will enjoy faster, the statement read.
"It is important to note that a member is able to skip a video preview at anytime if they are not interested," the spokesperson added.
The streaming giant most recently doubled its marketing spend from last year, spending around US$1 billion in the six months ending 30 June 2018, up from around US$546 million in the same period last year. This was in a bid to focus on title brands and maximising their potential, with 80 to 85% being dedicated to this focus.
That being said, the company also revealed that it had missed its membership growth forecast of 6.2 million for the second quarter of 2018 (Q2 18), witnessing only a 5.2 million growth to 130 million memberships. This saw the global streaming service provider post a revenue of US$3,907 million for Q2 18, compared to US$2,785 million during the same period last year.
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