They already have an ad tier (tmobile bundles it into some of their plans). Is this going to be an even more ad tier?
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Mega ad tier.
This is the best summary I could come up with:
Netflix, once a pioneer of ad-free viewing that offered a break from traditional TV norms, is now contemplating launching free ad-supported versions of its service in markets like Europe and Asia, Bloomberg reported.
Greg Peters, Netflix’s co-CEO, recently told The Verge that they view ad sales as “a new muscle” for the streaming giant to “build” and then apparently flex.
According to a recent Madison and Wall survey, cited by Bloomberg, Netflix currently ranks around ninth or tenth in the online video advertising space, all while lagging far behind not only YouTube, but also Disney and Paramount, and struggling to catch up with Amazon and Roku.
Maxine Gurevich of Horizon Media argued that as long as people find the service valuable and the ads are minimally intrusive — that is, highly relevant and engaging — they should not detract from the overall user experience.
For example, Netflix’s intention to show ads during the NFL’s Christmas games to all subscribers, including those in the ad-free tier, is a tad disconcerting.
Only time will tell what happens with Netflix’s subscription tiers, and whether we’ll see moderately priced ad-supported options alongside premium ad-free versions that will be generally out of reach for regular consumers.
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Time to bring back Tivo
That's the problem. They already wisened up and HDMI, the propietary standard they forced everyone to change to for HD+, has built-in DRM. Most smart TV have DRM built-in as well.
Cryptanalysis researchers demonstrated flaws in HDCP as early as 2001. In September 2010, an HDCP master key that allows for the generation of valid device keys was released to the public, rendering the key revocation feature of HDCP useless.[8][9] Intel has confirmed that the crack is real,[10] and believes the master key was reverse engineered rather than leaked.[11] In practical terms, the impact of the crack has been described as "the digital equivalent of pointing a video camera at the TV", and of limited importance for consumers because the encryption of high-definition discs has been attacked directly, with the loss of interactive features like menus.[12] Intel threatened to sue anyone producing an unlicensed device.[11]
https://en.m.wikipedia.org/wiki/High-bandwidth_Digital_Content_Protection