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Michael Shmarak's avatar

Hi Mike,

This was a great piece. Having seen the Netflix stuff happen, I always wonder if they had a real strategy going into it.

Hiring smart people is one thing; creating a path for success is another--and one that typically takes more than two years.

Do you think Netflix's strategy is working--beyond them kicking those two execs to the curb?

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Mike Shields's avatar

Thanks!

I don't think they are doing enough to grow the ad user base fast. because they are probably wary of screwing up what's working

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Michael Shmarak's avatar

Did any of your research or discussion look into the ad business and if they planned on ads within gaming? As I recall (and I could be wrong(, their Games section has no ads/in-app purchases. Seems like they could find growth there, no?

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Ronald Davenport's avatar

Mike,

I'd like to run an idea past you for Netflix to distribute ads within linear, pre-screened, curated, brand-safe content distributed by government licensed content providers. Further, the content reaches over 240 million US users every week in every US market. Further still, the audience for the ads is measured using Nielsen ratings. Last, users already accept and expect ads as part of the product.

TV is radio with video. Radio becomes TV by adding video. The web allows a radio station to stream and simultaneously broadcast audiovisual content: the audiovisual is streamed on the station's transmitter; simultaneously, the audio from the audiovisual is broadcast on the station's website.

Distributing Netflix content via radio stations and their websites gives radio station's more valuable audiovisual inventory to sell. It also encourages stations to promote upcoming movies and events. Plus, more than one station can carry the same content at the same time -- just like network TV.

Monetization for Netflix comes from selling network ads -- again, just like network TV.

The only thing missing is a license under my patent which covers any method and/or system for the stream and simultaneous broadcast of audiovisual content by a radio station: https://patents.google.com/patent/USRE47819E1/en?oq=re47819 ("video" content as used in the patent is any content that contains video, including both video only content and audiovisual content).

Your thoughts?

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Jeffrey Chester's avatar

I don't think you wanted to use the word "accused" in Netflix piece. "Yet I’d argue that people are accused to ads accompanying creator content. "

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Mike Shields's avatar

sometimes I do feel accused by ads

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