#26 - Netflix Ads and a Tragedy of the Commons

Fat Tailed Thoughts

Today's discussion is on Netflix Ads. Netflix lost subscribers for the first time in over a decade. CEO and co-founder Reed Hastings opened the door to an advertising based model alongside the company's subscriptions. It's a bad idea. We discuss why combining advertising and subscriptions creates terrible incentives for Netflix, other business models for successful entertain businesses, and the many non-advertising options for how Netflix can grow revenues and subscribers. Please enjoy this breakdown of Netflix ads.

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