Netflix has hired former Snap advertising executives Jeremi Gorman and Peter Naylor as its ramps up efforts to launch a less-expensive ad-supported subscription streaming plan early next year.
The first-ever advertising hires for Netflix (who begin their positions in September) underscore the streaming behemoth’s commitment to supplement stagnating SVOD revenue with millions of incremental advertising dollars.
Netflix’s move to embrace advertising after eschewing the strategy since its inception as a by-mail DVD rental service 25 years ago, comes as major rivals Disney+, HBO Max, Paramount+ and Peacock incorporate ad-supported business models. In July, Netflix announced a partnership with Microsoft to provide ad technology.
Gorman, who was chief business officer at Snap, becomes president of worldwide advertising at Netflix.
“As a long-time member of Netflix, I have spent countless hours enjoying the amazing content, and can’t wait to be part of the team,” Gorman wrote on her Linkedin page.
Naylor will replicate his VP of sales title at Netflix after nearly two-and-a-half years at Snap. He has held similar positions at Hulu, NBCUniversal, iVillage and Lycos over the past 24 years.
“It sends a message that Netflix is really serious about building an ad business quickly,” Rich Greenfield, media analyst with LightShed Partners, told Reuters.
Separately, Santa Monica, Calif.-based Snap announced it is cutting 20% of 5,600-member workforce as it endures a fiscal third quarter that finds the social media platform on the path to producing its lowest quarterly revenue growth ever.
“[We must] face the consequences of our lower revenue growth and adapt to the market environment,” CEO Evan Spiegel reportedly wrote in an employee memo.