Bad financial reports are making Netflix think about its future development direction.
In a meeting with shareholders, Netflix co-CEO Reed Hastings said the company will consider the future of this package “within the next year or two“. COO Greg Peters commented that advertising “is an exciting opportunity for [Netflix]“.
“Netflix followers will know I don’t like the complexity that ads bring, nor will I be a fan of simple subscriptions,’ CEO Hastings said. “But even so, I am still a fan of consumer rights. And reaching users who want a lower price, with acceptable advertising, […]That plan makes a lot of sense“.
Hastings also believes that the impact of competitors has had a great influence on the way the company’s executives think. “Clear [mô hình này] good app on Hulu platform, Disney is using it too, so is HBO. We have no doubt that the model will succeed“.
The CEO of Netflix also reassured users about the collection of data serving ads. “When it comes to profit potential, it’s clear that the online advertising market has improved much, now you don’t need to provide all the information like before.“, said Mr. Hastings.
Since the day it opened, Netflix has refused to include advertising in its service. But in the context of slow growth and even, the number of users is declining, this is the right time for Netflix to reach out to users who value thrift.