#26 - Netflix Ads and a Tragedy of the Commons
Play • 36 min

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.


Check out this week's letter for the full story. Join the Fat Tailed Thoughts discussion on LinkedIn and the @FatTailThoughts discussion on Twitter with your co-hosts @KleeBeard and @StevenDickens3.

For more episodes of Fat Tailed Thoughts, visit fattailedthoughts.com. Past topics include WTF is CPI, Debt Collectors Who Help Rather Than Abuse, Slow Revolutions in Financial Services, and more.

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