Netflix CFO Has No Plans for Advertising however ‘Never Say Never’

A senior Netflix govt mentioned on Tuesday the corporate had no present plans to supply a streaming choice that included promoting however declined to rule it out sooner or later.

“Never say never,” CFO Spencer Neumann mentioned when requested if the corporate would change its long-standing place that its service ought to stay ad-free, including “it’s not something in our plan right now.”

Some Wall Street analysts have urged Netflix, the world’s largest streaming service, to develop a lower-cost tier with promoting to spice up income. The firm’s tempo of latest subscribers has slowed in current quarters, and Netflix shares have fallen practically 43 p.c this 12 months.

Walt Disney on Friday introduced it might supply an ad-supported streaming choice for Disney+, becoming a member of AT&T’s WarnerMedia, Comcast and others making an attempt to draw clients who’re prepared to observe commercials to keep away from paying a month-to-month charge.

For Netflix, “it’s not like we have religion against advertising,” Neumann mentioned on the Morgan Stanley Technology, Media & Telecom Conference.

But he mentioned the corporate was centered on constructing its present enterprise for patrons who wish to watch films and TV reveals with out commercials. “We think we have a great model, a subscription business that scales globally really well,” Neumann mentioned.

“It’s hard for us to ignore that others are doing it, but for now it doesn’t make sense for us,” he added.

Neumann additionally mentioned Netflix considered this 12 months as a “learning year” for its enterprise into cellular video games. The firm has provided 14 video games to subscribers up to now.

“This is something I hope is a big part of our business in a decade,” he mentioned. “It is not going to be a big part of our business in the next 12 months.”