Sky in the UK took a similar approach: you pay for a subscription, then you pay more for premium content, then you get advertising on top – and you never own the content you pay for. Later they moved the better content to pay per view before it reached the premium tier – they lost me for good at this stage. They overplayed their hand – you have to give a good deal to the viewer, not only to the shareholder.
WPP chief says the on-demand service needs other sources of revenue to help fund its $4bn-plus content budget
Source: Netflix will have to consider ads to make a profit, says Sir Martin Sorrell | Media | The Guardian