Netflix Says No to Ads

Netflix from day one has always provided its streaming content online and on TV screens without incorporating ads.

Well, according to Netflix Vice President of Corporate Communications Steve Swasey, that motto will remain the same. Swasey, in an interview with Fast Company said, “The topic of bringing advertising to the company's streaming service has been brought to the table from time to time over at Netflix but the arguments in favor of ads haven't been all that compelling.”

"Every time, we shoot it down," he added.

Unlike the company’s top competitor, Hulu (News - Alert) Plus, which offers a subscription fee—$7.99 per month and places ads in the content it streams, Netflix remains stead fast on pleasing its customers without ads.

Continuing his discussion with Fast Company, Swasey said, Netflix prefers "to have complete seasons of the series rather than day-after broadcast." Perhaps most importantly, Netflix can offer that content and push cash into the hands of content providers without relying on advertising to pull it off.

In a nutshell, Swasey believes a direct approach without ads, works best for all stakeholders. "Netflix is a new money provider," Swasey told Fast Company. "This is new money in the system, which is good for content owners."

In related Netflix news, the Netflix blog announced it has conducted its own rating of U.S. and Canadian ISPs’ content delivery speeds (CDS) and average bandwidth.  The day before, Netflix was all over the news for not only reaching beyond 20 million subscribers, gaining 7.7 million of those subscribers in 2010, but also for posting some very impressive full-year earnings for 2010, as reported on TMCnet.