U.S. Markets open in 5 hrs 33 mins

Netflix Doesn't Run Ads on Its Shows, But Here's Why It Should

Tiernan Ray

Case in point, Netflix has avoided offering an advertising-supported plan even though it might be another way to cover the cost of acquiring or creating content, costs that for Netflix and all companies in the streaming market are already very high and probably going higher. Netflix has $10.4 billion in off-balance-sheet obligations for content, and another roughly $8 billion in current and non-current liabilities for content on the balance sheet, according to the most recent quarterly numbers. Outgoing CFO David Wells said last quarter that Netflix sees a time when its efficiency in programming content leads to operating profit that exceeds its cash burn, though he left the time frame of that unspecified.