As Netflix continues to grow, this will continue to impact not only the entertainment business, but Advertising as well.

Being a content producer and a marketer, we see how this effects both sides.  From a marketing perspective we have to watch where eyeballs move, so we can reach the right eyeballs for our clients in as large an amount as we can.  As more people watch on-demand programming the model is moving away from 30-second commercials. Hulu offers free programs and has Ads placed in, so this is similar to TV as we’ve known it, but with Netflix having such a huge lead they will have the larger budget to license content.  This will allow Netfilx to offer a greater selection of programing (TV & Film) and for a small monthly fee people will not have a problem signing up and the proof is already being seen.

As advertisers we must continue to create new ways to reach our audiences.

For Broadcasters, they estimate the main value of their programming by the amount of money made from 30-second commercials sold around the programming. The growth of on-demand viewing will continue to effect this model.

You can read more in this Advertising Age article:  http://adage.com/digitalnext/article?article_id=146057