Netflix With Commercials CFO: ‘Never Say Never’

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Netflix was initially hostile to the idea of adding a commercial-supported Tier to its service, but executives seem to be open to the idea. Netflix’s CFO announced that a future ad-supported Disney+ version would be available just days after Disney had made plans. Spencer Neumann said Tuesday it isn’t being ruled out. But, you shouldn’t be surprised if an ad-supported Netflix launches in the near future.

“It’s not like we have religion against advertising, to be clear,” Neumann said during Morgan Stanley’s 2022 Technology, Media & Telecom Conference, reports Variety. “But that’s not something that’s in our plans right now… We have a really nice scalable subscription model, and again, never say never, but it’s not in our plan.”

Neumann was asked by Disney to comment on their new plan to launch Disney+ with ads in 2018. Although it is difficult for Netflix to ignore such moves, “it now doesn’t make sense for us,”Neumann agreed. Later, he joked that he doesn’t. “think I’ll get”Disney+, the ad supported version of Disney+.

Netflix will soon be the only major streaming platform without an ad-supported plan. Paramount’s Paramount+ platform and WarnerMedia’s HBO Max both have ad-supported plans. Hulu, owned by Disney, also has an advertising-supported tier. Neumann believes Netflix is one of the most powerful competitors. “losing a lot of money”Offering low-price tiers.

Netflix’s continued operations are unaffected by commercials. However, the service has raised prices in the U.S.A. and Canada to offset the increased production costs. Neumann admitted Tuesday to being partly responsible for the slow growth in 2022’s first quarter. “At the end of the day, we’re pricing for what we believe is the value we provide,”He said he would defend price rises.

The end of the last year was Netflix had 221.8 millions paying subscribers in the worldNeumann says that although the company is growing, there’s still plenty of room for growth. The company is “small relative to every kind of metric we look at, whether it’s the hundreds of billions of dollars spent directly on direct-to-consumer entertainment”Nearly 1 billion broadband households worldwide (excluding China) Nielsen estimates that Netflix only has a 10% share in TV time in the U.S. Variety.

Neumann was also asked about Netflix’s decision not to provide service in Russia following President Vladimir Putin’s invasion of Ukraine last month. Netflix does not have a significant presence in Russia. However, it was producing a few original content that was also suspended. “I’d be remiss if I didn’t lead with, it’s just a horrible tragedy, and our hearts go out to all that are impacted in Ukraine in that part of the world,”Neumann stated, and later added, “relative to the opportunity… we decided to suspend our operations there.”