Netflix CFO on adding ad-sponsored plans to the platform: ‘Never say never’
After the controversial decision by the Mouse House to offer an ad-supported subscription plan later this year, Netflix CFO Spencer Neumann has addressed the possibility of similar plans in their own business plan.
Per Deadline, the CFO’s comments came through an appearance at Tech, Media & Telecom 2022, when he joked about Disney Plus adding the option for a cheaper plan that comes with ads. “Never say never,” Neumann told the crowd, further adding:
“I would love to get a show of hands of people who liked that decision by Disney, but I don’t think I’ll get it,” he said. “It’s not like we have religion against advertising, to be clear. We lean into consumer experience, consumer choice, and what’s great for our creators and storytellers.”
As Neumann explains it, advertisements could help that business model down the path, but it’s “not something that’s in our plans right now.”
The Netflix boss was even asked about the company’s decision to halt services in Russia, amid a flurry of other big conglomerates doing the same thing. “It’s just a complex business operating dynamic right now,” he replied, without getting into the nitty-gritty of its political and financial implications.
With more than 220 million subscribers around the world, Netflix still wears the crown of streaming sovereignty, despite the emergence of powerful contenders like Disney Plus, HBO Max, Apple TV Plus, etc. The company is also a juggernaut of content, both in cinema and television, so it’s safe to assume that they won’t be in need of lowering their subscription prices through sponsorship anytime soon.
That still leaves the question of raising prices, though, something that streaming giants have genuinely been considering of late.