Ashwin Sharma .

This is what I don't understand about advertisements in India.

  1. When you go for a movie in a cinema you have to pay for the tickets, inflated price for snacks and still they make you watch advertisements for 10-20 mins. Why so, are we getting the ticket for free? No right, then why do they make us watch ads.
  2. Few of the top selling smartphones brands do the same thing, they inject ads right in the OS. Are we getting the phone for free? No right, then why ads?
  3. Heck! Even amazon prime, a paid OTT platform shows ads. Although they don't show third party ads but ads of newly launched series on their own platform.

Why do companies expects customers to watch ads even after paying money, I don't understand this logic.

Originally Posted Here
20 Comments

Sanjeev Agrawal

It all ends at the audience. We pay, hence they sell.... Stop paying and going to the cinema halls, it will stop. The same holds good for all such products. Stop Consuming or Stop Complaining.

Kapil Agarwal

This happens when we allow it to happen. I found your insights true. Their is always a room for change when we agree to work on.

Faisal Zia Anwer

Well we were charged for cable tv as well, there were ads there too. They have a business model in that sense. I don't get the argument?

Abhishek Samant

Well advertising works on the same basic principles all over the world, not just in India. I guess the ultimate goal is to make a sale. Also, I understand that these ads are indeed annoying, however it's necessary to read the fine print when making any purchase. Amazon Prime does not mention an 'ad-free' experience and the same thing is done by theatres and other platforms that give you ads. They'll never include the words 'ad-free' in their terms and conditions unless they are actually providing content without ads.. So even though it's kind of annoying, I don't think they can be sued or anything (I'm not a lawyer)

Maannik Singh

Stopped using prime video and hotstar for this reason. Vote with your wallet.

Sazi Suber

i get annoyed with Hotstar playing their garbage ad at the beginning of even a live matches . Sadly that’s my only source for live streaming Premiere League. In that regard Sony liv app doesn’t show you even half time ads and rather plays a blank screen if you are a premium user.

Maannik Singh

Streaming services hold all the power when it comes to licensing live events, but apart from that it they keep this schtick up people will go back to pirating movies again

Akathma Devi Nimmagadda

We buy newspaper and we get ads. Logic is that, they were able to operate and give the paper at low price because of ads. But reality is we live in a capitalist world.

Karthikeyan Balraj

It is additional way for companies to make money and make the products more affordable to everyone.

Manage

Nikhil Sachdeva

We dont pay enough to cover costs excepts multiplex ads which should be stopped for me as well.

But for other platforms we pay pennies. For eg news paper.

Sibendra Mallick

Its known as Cross Selling

Mohit Nanda

Its a source of income. Why would the theatres let go of it. Infact they can also come up with something like a premium version similar to youtube where you don’t see ads. But then the price of the ticket would be higher as they need enough people in that auditorium which will be a difficult task. There won’t be a lot of takers for it.

In regards to amazon prime, netflix, etc. I personally feel its ok to show if something new has launched. Its to inform the viewers. If they would have been bombarding us with emails or notifications, that would classify as ads or marketing.

Ajay Mallareddy

Since you pay subscription for a tv channel, the tv channel should not show ads? What sort of logic is this?

Arjun Tuli

To maximize revenue and profits. The amount they are charging you upfront is unlikely to cover the cost of the business, and hence ads. If the upfront cost is high, people might not just opt in for the product.

Raghavendra Bsrpg

1) First one, because they simply can.. and want to promote new movies and make some money throught that as well. And, in between breaks and before movie begins, they feel its better to play something on screen and keep audience engaged than to have blank screen..

2) I think your smartphone is hacked. None of big players inject ads in the OS / on the phone when you buy. Ofcourse, pre-installed apps are common.

3) They want to show new and exciting content and many people actually like that! Anyway you can skip it anytime..

Not just in India. Happens everywhere

Jayanta Samaddar

If most customers are okay with that pain point, they will maximize a revenue stream. Netflix launched out strong by eliminating the ads. That's product differentiation to me, nothing more. Netflix sacrificed ad revenue to add value in a way. Others decide to not add that value. People still get to make free choices. It's all fair.

Sarang Surendra Bhirad

You are paying for their service. And service doesn't include not showing ads.

Amit Halbe

Revenue model is not only inclusive of price you paid ..Your priceis subsidized with ad revenue stream factored in. Else as few members said here ,you won't get 30+ page newspaper everyday below 10 Rs

Aman Arora

You must not see Advertising business by words. The actual digital advertisement business is not about ads, it's about in-content ads/in-app ads. It's like, you have to bear the factored experience due to ads bcoz you are getting it for free. On the other hand, theatre business ads are not meant to facture or spoil your experience. They only and only place ads during intervals and before which are strategies breaks for refreshments. The viewership of those ads are much low as compared to in-content spoiler ads. Hence, theatre charges those.

Ronil Mehta

They do it because people still go to these movies, buy these smartphones and pay for their platforms. The logic is, if they can do these things and people still show up, why not do it. The unfortunate truth is, the ultimate goal is profit.

The good news is, this is how industries that do not focus on customer happiness run the risk of being upended by savvy disruptors.

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