The company hasn't yet fully committed to the idea, but data suggests it's what a large tranche of its consumers want.
For the first time since Netflix began streaming videos all the way back in 2007, the company is seriously considering an ad-supported version of its service. During the first-quarter conference call, CEO Reed Hastings said, "Think of us as quite open to offering even lower prices with advertising as a consumer choice." The company intends to explore the idea in detail over the course of the next couple of years.
Hastings' comment is hardly a guarantee that we'll actually see a launch of a lower-cost, ad-supported video-on-demand (AVOD) platform, but it should be considered a safe bet that we'll see it come to fruition at some point. There are three reasons Netflix should do so and two reasons it practically has to.
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