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Netflix Stock Wobbles As Wall Street Debates Streaming Giant’s Embrace Of Advertising

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Netflix stock dipped 1% to close the week at $230 a share as debate continued on Wall Street about the financial impact of the company’s embrace of advertising.

Basic with Ads, the new subscription tier with four to five minutes of ads per hour of programming, will debut in early November in the U.S.

and 11 other countries, the company announced Thursday. It will be priced at $6.99 Stateside. Two senior executives, COO Greg Peters and global ad chief Jeremi Gorman, presided over a 40-minute demonstration for the press, an event that was later posted to Netflix’s public newsroom, prompting a wave of reactions from Wall Street analysts.

Peters has said Netflix, which will report third-quarter results on Tuesday, expects a “neutral to positive” effect from the cheaper tier, with some current subscribers trading down to the lower plan but significant ad dollars coming in and perhaps some new subscribers joining the party given the price point.

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