Netflix Denies Rumors That It Will Add Ads

Rumors that Netflix

is looking to introduce ads into their streaming service appear to be unfounded. According to a company spokesman, they are not planning to implement or test third-party advertising, but instead will promote Netflix original programming with short trailers and teasers. "We are not planning to test or implement third-party advertising on the Netflix service. For some time, we've teased Netflix originals with short trailers after a member finishes watching a show. Some members in a limited test now are seeing teases before a show begins. We test hundreds of potential improvements to the service every year. Many never extend beyond that." CEO Reed Hastings has also been against third party advertising, saying "We have no plans to go towards advertising-based models. Our brand at least over the next couple of years and at this point really stands for that commercial free experience that we have where the consumer's in control of the experience. … It's fundamental to that control orientation that we don't cram advertisements down people's throats." Some analysts feel that Netflix will ultimately need to run ads to better monetize its business model. especially since the company can utilize a more targeted ad campaign by using the viewer history. Targeted campaigns carry much higher margin rates than traditional campaigns. Netflix has repeatedly said there are no plans to introduce advertisements to the streaming service. Shares of NLX are trading down slightly in pre-market trade, last quoted at 621.