Netflix explains how it approaches marketing partnerships with brands like Coca-Cola and Nike, and the type of deals it's interested in

Hastings added:"This year we will add about $5 billion of incremental subscription revenue, which is almost all of gross margin and that's faster than any entertainment company has grown in the history of the world."The Netflix boss' estimates raise a counterpoint to analyst estimates for how much money an ad-supported package could potentially offer the streaming company, if it were to introduce one.

Hastings comments suggest that the company could grow its revenue even more by doubling down on what it is already doing. The company reiterated in its letter to investors on Wednesday that being ad free is a"deep part of our brand proposition." It said speculation that it would start selling advertising is"false."Netflix does not want to"get distracted with alternative revenue sources," because its subscriber engine is what drives revenue, Hastings said in the earnings interview.

"The core focus is, create all these merchandising opportunities, tie-ins, touch points, so that you feel the 'Stranger Things' energy so that more people join," Hastings said."We do monetize all that. It's just we're monetizing it through our giant engine rather than through little sidecar vehicles."That said, Netflix has been burning cash to fund the originals that are helping to attract these new subscribers.

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