Netflix Execs Say Advertising Tier Is Off To “Solid” Start; Viewing Is On Par With Ad-Free Level, Will Account For 10% Of Company Revenue In Coming Years

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Netflix’s landmark entry into ad-supported streaming, which began last November, is off to a “solid” start and will soon bring in at least $3 billion in annual revenue, executives said

as Co-CEO along with Ted Sarandos, who has held the title since 2020. Co-Founder and Co-CEO Reed Hastings is becoming executive chairman after 25 years in the corner office.

“They’ve had a long head start,” Neumann said, noting the U.S.-only reach of Hulu, compared with Netflix’s ad tier being in 12 global territories at launch. The exec added that Netflix reaching altitude with ads will be a multi-year process. “We’re not going to be larger than Hulu in Year 1,” he said, “but we would expect to be as large or larger over time, certainly, in just our U.S. market, and more from there.

Asked about the potential to embrace FAST, or free, ad-supported television , Sarandos said the company has other near-term priorities. “We’re open to all of these different models,” he said, “but we’ve got a lot on our plate this year.”

 

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Transforming the internet into 'Cable tv, but with even more ads' is a long term project.

johncampea BurnettRM

Cool but we need a better model for show renewals

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