Jeremi Gorman: Last News

Netflix beat Wall Street expectations for earnings per share and subscriber growth in the third quarter, cheering investors (if not consumers) with news that a new round of price hikes is on the way.

Todd Spangler NY Digital Editor Netflix is seeing strong growth of its advertising-based plan, having recently eclipsed 23 million global monthly active users, president of advertising Amy Reinhard said. Reinhard spoke Wednesday at the Variety Entertainment Summit at CES 2024 at Las Vegas’ Aria Resort and Casino.

Brian Steinberg Senior TV Editor Netflix is ready to use “The Crown,” “Squid Game” and other signature series to take ad dollars from rival streamers. The company says it will start to offer so-called “title sponsorships” to advertisers ready to align with the new reality series “Squid Game: The Challenge” and the final season of “The Crown” as part of its bid to accelerate the utility of its ad-supported tier.

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.

Netflix is undercutting Disney+ on price by a dollar a month as it prepares for a landmark expansion into advertising-supported streaming.

Todd Spangler NY Digital Editor Snap announced that it was cutting 20% of its workforce in a bid to contain costs — eliminating nearly 1,300 positions — and that the company will discontinue funding original series. With the moves, Snap estimated it will save $500 million in cash expenses on an annualized basis relative to the second quarter of 2022. That includes a $50 million estimated reduction in fixed content costs with the elimination of Snap Originals. Shares of Snap were up 10% Wednesday in mid-morning trading on the restructuring news, but the stock price is still down more than 75% year to date.

Todd Spangler NY Digital Editor Snap is reportedly getting ready to make a major round of layoffs, as Snapchat advertising sales have hit turbulence. The social messaging and media company is set to cut 20% of its workforce, with layoffs set to begin Wednesday, the Verge reported, citing anonymous sources. A Snap spokesperson declined to comment. As of the end of June 2022, Snap had 6,446 full-time employees, up 38% year over year. As part of the layoffs, Snap’s advertising group will be restructured, per the Verge report. That comes as Netflix just hired Snap’s two top ad execs — chief business officer Jeremi Gorman and VP of sales Peter Naylor — to lead advertising efforts as Netflix gears up to launch a cheaper, as-supported plan in 2023.

Brian Steinberg Senior TV Editor Netflix, eager to spark better relationships with Madison Avenue after years of avoiding them, has lured two senior executives away from Snap to do so. The streaming giant has hired Jeremi Gorman, Snap’s chief business officer, and Peter Naylor, its vice president of sales, to start making outreach to top advertisers in a bid to launch an ad-supported tier for subscribers who may be looking for new value propositions amid a roiling stock market and as competition for broadband-savvy consumers has grown more intense. “Jeremi’s deep experience in running ad businesses and Peter’s background in leading ad sales teams together will be key as we expand membership options for consumers through a new ad-supported offering,” said Greg Peters, Netflix’s chief operating officer, in a statement.