According to reports, Netflix’s CFO said that the company currently has no plans to provide a streaming service that contains advertisements, but it does not rule out the possibility in the future.
Asked if Netflix, known for being ad-free, would switch to an ad-serving service, Chief Financial Officer (CFO) Spencer Neumann said: That’s not our current plan. But it’s not too early to say.
Wall Street analysts are recommending that Netflix use advertising to develop a lower-cost business to boost revenue. The company has slowed in adding new users in recent quarters. Shares of Netflix are down nearly 43% this year.
The Walt Disney Company announced Friday that it will offer an ad-supported streaming service for Disney+, joining AT&T’s WarnerMedia, Comcast and others in the race for low-willingness-to-pay but ad-friendly platforms. client.
For Netflix, we’re not against advertising, Neumann told the Morgan Stanley Technology, Media and Telecommunications Conference. But he said the company is now focused on building out its existing business and serving customers who want to watch movies and TV shows without ads. We think our model is good, and the subscription business is growing very well globally, Neumann said.
Of course, it’s hard for us to ignore that other people are doing it. But for now, it doesn’t make sense for us, he added. Neumann also said that Netflix sees this year as a “learning year” for the company to move into mobile gaming. So far, the company has made 14 games available to users.
I hope it’s a big part of our business for the next 10 years, he said. It’s not going to be a big part of our business for the next 12 months.