Netflix CEO Reiterates Zero Interest in Advertising Business: ‘There’s Not Easy Money There’

  • 📰 Variety
  • ⏱ Reading Time:
  • 46 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 63%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Netflix continues to say it has no strategic interest at all in launching a version of its streaming service that includes ads — and would rather avoid the privacy pitfalls of collecting cons…

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.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 108. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines