July 17, 2019
Netflix July 17 put to rest speculation it plans to incorporate advertising into programming similar to what Hulu does.
With the SVOD pioneer spending billions annually on content, Wall Street analysts have suggested Netflix would roll out an ad-supported viewer option to generate incremental revenue to help pay for it.
CEO Reed Hastings put a halt to the scuttlebutt.
“We, like HBO, are advertising free,” Hastings wrote in the shareholder letter. “That remains a deep part of our brand proposition; when you read speculation that we are moving into selling advertising, be confident that this is false. We believe we will have a more valuable business in the long term by staying out of competing for ad revenue and instead entirely focusing on competing for viewer satisfaction.”