Netflix could generate some $1.3 billion in revenue by 2021 if it introduced an ad-supported tier in the US:
In the near term, Netflix is unlikely to introduce ads because it would likely hurt more than it would help. Netflix will hold out as long as possible on rolling out any ads whatsoever: To do so would be to run contra to its entire brand identity, and would represent a significant betrayal of subscriber expectations.
I've long been a skeptic of such industry speculation, but if Netflix can't diversify beyond subscription revenue, a separate ad-supported tier is at least plausible. If Netflix does introduce ads, I think it's most likely to happen first — or even just — in emerging markets.1. Sign up for the Digital Media Briefing to get it delivered to your inbox 6x a week.
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