Posted On: 04/28/2015 5:30:32 PM
Post# of 96892
BAD NEWS FOR NETFLIX! Read the last line carefully though!
Martin Sorrell is the chief executive at WPP, one of the largest advertising and public relations companies in the world. During The Financial Times’ FT Digital Media conference on Tuesday, Sorrell addressed some questions regarding Netflix, and his thoughts on the state of the company’s business were quite interesting.
“Netflix is extremely powerful yet it has not yet achieved profitability — that old-fashioned thing that, at the end of the day, we are all interested in, in the long run,” Sorrell said when discussing Netflix’s recent earnings report, Business Insider reports.
The executive noted that Netflix’s costs are huge, and at some point the company is going to have to make some changes if it hopes to maintain growth while continuing to expand and release good original content.
“In those circumstances, it will have to raise its subscription prices — and you can remember what the reaction was like to that last time around — or have an alternative revenue generation operation, one of which will be advertising,” Sorrell said.
The executive also noted that Netflix’s continued success, and the rise of similar platforms, will come at the expense of traditional TV networks.
https://www.yahoo.com/tech/s/uh-oh-netflix-mi...13116.html
Realize the Ultraflix is VOD and allows advertising. Seems they are well ahead of Netsux and will allow profitability much faster.
Martin Sorrell is the chief executive at WPP, one of the largest advertising and public relations companies in the world. During The Financial Times’ FT Digital Media conference on Tuesday, Sorrell addressed some questions regarding Netflix, and his thoughts on the state of the company’s business were quite interesting.
“Netflix is extremely powerful yet it has not yet achieved profitability — that old-fashioned thing that, at the end of the day, we are all interested in, in the long run,” Sorrell said when discussing Netflix’s recent earnings report, Business Insider reports.
The executive noted that Netflix’s costs are huge, and at some point the company is going to have to make some changes if it hopes to maintain growth while continuing to expand and release good original content.
“In those circumstances, it will have to raise its subscription prices — and you can remember what the reaction was like to that last time around — or have an alternative revenue generation operation, one of which will be advertising,” Sorrell said.
The executive also noted that Netflix’s continued success, and the rise of similar platforms, will come at the expense of traditional TV networks.
https://www.yahoo.com/tech/s/uh-oh-netflix-mi...13116.html
Realize the Ultraflix is VOD and allows advertising. Seems they are well ahead of Netsux and will allow profitability much faster.
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