NBCU’s Head of Digital Sales Does Not Like the Netflix Model

Ads are the way to go, he said

Peter Naylor is not a fan of the Netflix model. Naylor, the evp of Digital Sales at NBC Universal, said at the Elevate Online Video Advertising Summit in midtown this morning that he hopes the rest of the online video universe does not go the way of Netflix—but rather sticks to an ad-supported model.

"I hope Netflix will have advertising in the next three years," Naylor said. "We need commercial environments to continue… if we train consumers to be in total commercial avoidance mode it's not good."

Doron Wesly, head of business science and planning at media planning firm Mindshare, went further and predicted that Netflix will adopt an advertising model in the next few years.

The panel discussion between Naylor, Wesly, and moderator Anthony Risicato, the general manager for video platforms at online video advertising firm Tremor Video, centered mainly on the convergence of web video and traditional television. Both of the panelists agreed that web video is an increasingly vital part of the video ecosystem and that the television networks, at least on the surface, seem to understand as much. Currently, the traditional television ad market stands at around $80 billion; according to Risicato, the online video ad market is hovering at around $1 billion. But, says Naylor, "it's only going to continue to shift as consumer habits go that way… it may be $1 billion to $80 billion now, but as the time spent creeps up that will change."