Some Netflix subscribers have reported seeing test ads running before and after shows, according to Cord Cutters News (cordcuttersnews.com), a blog geared toward those interested in alternatives to cable television.
All ads have been for Netflix original programming, but this has raised concerns that it could pave the way for external advertisers, giving the streaming giant an additional funding source.
(UPDATE) However, Netflix told Business in Vancouver June 2 that it does not plan to test or implement external advertising.
"We are not planning to test or implement third-party advertising on the Netflix service," a representative from Netflix said via email. "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."
Even if Netflix does not intend to sell ads externally, the in-house ads could still serve a purpose.
“This would be one more way for them to show you, ‘Here is what we offer – stay in our system for longer,’” said Josh Loewen, owner of Netflixable.com, a site that lists all programs available on Netflix broken down by region.
Netflix has used the fact that its shows are ad-free as a selling point.
“Members can play, pause and resume watching, all without commercials or commitments,” the service has said in previous press releases.
