The streaming service Netflix does not rule out the introduction of a cheap, advertising-financed subscription for the future.
Netflix doesn’t rule out an ad-supported subscription.
Netflix isn’t ruling out the possibility of offering a cheap subscription funded by advertising in the future.
“Never Say Never”
Spencer Neumann, chief financial officer at Netflix, said at Morgan Stanley’s Technology, Media & Telecom Conference in San Francisco this week.
Ad-supported subscription currently not planned
However, Neumann added that the introduction of a cheaper subscription with advertising is currently not planned at Netflix. The number of new subscribers to the streaming service has increased more slowly in recent years. This year, Netflix stock has fallen nearly 43 percent. For this reason, some Wall Street analysts are urging the company to develop a new, cheaper subscription model with advertising for undecided users.
Disney + presents with a cheaper subscription
Many potential streaming customers are willing to see ads if they can reduce or avoid monthly subscription fees. Disney+ is now also targeting these customers. The streaming service announced an ad-supported streaming option last Friday. According to their own statements, Netflix has nothing against advertising. At the moment, however, the company prefers to concentrate on expanding the streaming offer with films and series. At the moment, introducing an advertising-financed subscription to Netflix makes no sense, says Neumann.
Netflix has high hopes for games
Netflix also plans to expand its game offerings in the future. While it won’t play a major role for Netflix over the next 12 months, gaming is expected to be a big part of Netflix’s business over the next decade, the chief financial officer said.