service, after he was asked on the company’s fourth quarter 2019 earnings interview about advertising by moderator Guggenheim Securities’ Michael Morris.
By the same token, Netflix — by not serving targeted ads — is not exposed to data-privacy issues and related controversies. “We’ve got a much simpler business model, which is just focused on streaming and customer pleasure,” he said. “So we think with our model that we’ll actually get to larger revenue, larger profits, larger market cap because we don’t have the exposure to something that we’re strategically disadvantaged at, which is online advertising against those big three.
Hastings’ comments come after NBCUniversal last week unveiled more details about Peacock, its forthcoming streaming service, which will include a free, ad-supported tier. Other ad-supported VOD plays gaining traction include Viacom’s Pluto TV and Tubi. In addition, Disney-controlled Hulu has long offered a cheaper, ad-supported tier, saying that some 70% of its subscribers are on the $5.99 package that includes ads.