According to reports, Netflix previously revealed when it released its first-quarter 2022 earnings report that it planned to launch more options, including lower-priced, ad-supported subscriptions. Netflix co-CEO Ted Sarandos revealed why in a recent interview with the media.
“The most important thing for us is the simplicity of a product, a price point,” Sarandos said. “However, I think some complexity can be afforded right now,” he added.
Netflix has fought against the ad model for years, focusing instead on subscribers.
When asked if he thought the lack of a diverse revenue stream hurt the company, Sarandos said: “I think it’s a trade-off of simplicity and complexity. I think what we’ve done over the last 10 years, we’ve benefited more from simplicity. .”
Related Post: Netflix will cut its investment in movie projects, and the streaming giants who are not bad money start saving .
The media previously reported that the road to Netflix’s advertising business could be bumpy.
Swerve TV CEO Steve Shannon, a former Roku executive, said in March that Netflix has yet to license its shows for streaming and advertising, and that it must be more open about data to attract advertisers.
The media pointed out that Netflix founder Hastings expressed optimism about the advertising business during the earnings call that caused Netflix’s stock price to plummet in April this year.
“I think it’s pretty obvious that this is working for Hulu. Disney is doing it, and HBO is doing it. I don’t think we have too much doubt that it’s going to work, all these companies have figured it out,” he said. “I believe we Will go into the field and figure it out, rather than test it, or maybe do it or not.”
The report comes as the company is going through unprecedented times. In its earnings report at the end of April, Netflix reported its first subscriber churn in more than a decade. The stock has fallen about 43% since then.
In addition, Netflix has laid off more than 150 employees and even canceled an animated show with Meghan Markle.
Related Post: Netflix lays off about 150 people due to budget cuts, more will leave in the future.
