Netflix CEO Reed Hastings has given an in-depth interview to Variety in which he speaks about why Netflix’s business model is best suited without ads, if the company might ever get into gaming, and the employee who was reimbursed $100,000 before leaving the company.
Regarding ads, Hastings said it’s not a hard and fast rule that Netflix wants to avoid ads, but it just makes business sense to build the platform on a paid model versus ads.
“It’s definitely not a rule. It’s a judgment call… It’s a belief we can build a better business, a more valuable business [without advertising],” he said. “You know, advertising looks easy until you get in it. Then you realize you have to rip that revenue away from other places because the total ad market isn’t growing, and in fact right now it’s shrinking. It’s hand-to-hand combat to get people to spend less on, you know, ABC and to spend more on Netflix.”