In a study undertaken by a large marketing technology firm in the United Kingdom, it was found that the lion share of end-users would cancel their subscriptions simply because of newly implemented Netflix commercials. While we are all aware how integral technology is to Netflix’s strategy, it is important also to look at the business side of technology and how Netflix must consider its customers and its entire business as a conglomerate and as a system. For instance, if Netflix were to attempt to make more money, a simple way to do so would be to start adding commercials to its platform to advertise more and engage more individuals; however, Netflix would be ignoring the interaction between its customers and those implemented commercials. Instead, Netflix would likely actually lose money in the long run from this strategy!
Currently, Netflix owns the majority of people’s time when they are streaming shows on any device in the UK. As the push for new customers among streaming services continues to heat up, Netflix and other streaming services are looking at the interplay between their advertising strategies and the commercials that their customers watch. As streaming continues to heat up, particularly among the young, it becomes increasingly more important for streaming services to ensure that they are able to keep their audience, without losing them out to other services.