|
|
|
|
|
by w10-1
1320 days ago
|
|
It strikes me that supporting ads has a huge impact on the technical infrastructure. It complicates server deployment and client UI. And how would you tailor markets to regions? subscriber preferences? coveted spots (just before that cliff-hanger...)? Oy I'd be interested in ballpark resource estimates for added complexity and staffing for operations and for the ad business units. Most importantly, is most of the cost up-front in infrastructure development, or do the ad business units themselves eat so much they don't make sense below a certain level of adoption? i.e.,
- How many ad-supported users does Netflix need for the ad tier to justify its fixed and operational costs? - What about cannibalizing the higher tiers? Can ads end up being a net revenue loss even if they pay for themselves? - If it is complicated and hard, and they get it right, can it be a moat for them? Way too many questions. |
|