Netflix With Ads: Impossible or Inevitable?

Netflix and ads have long functioned like oil and water: They don’t mix.

But as Netflix inches toward domestic saturation as it continues to grow globally, experts believe it’s only a matter of time before the streaming giant reconsiders its stance as a way to boost revenue and attract more subscribers.

What are the chances of an ad-supported subscription option?

As Netflix gets set to report its second-quarter performance Wednesday afternoon, the company has 60.2 million domestic subscriptions. With about 2.5 people watching per account, according to eMarketer analyst Eric Haggstrom, that comes out to more than 150 million people in the U.S. who watch Netflix.

“Netflix needs a way to grow its U.S. revenue in ways beyond just raising the subscription price,” Brian Frons, former president of ABC Daytime and current UCLA lecturer, said. “One wonders why they would not add an ad-supported model.”

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