Will Netflix Ever Offer an Ad-Supported Plan? ‘Never Say Never,’ CFO Responds

variety.com:

Todd Spangler NY Digital EditorNetflix execs have regularly insisted that there’s no way the company would introduce an ad-supported service.Netflix CFO Spencer Neumann, speaking Tuesday at an investor conference, took a slightly more open tone: He noted that the subscription streamer doesn’t currently have any plans right now to introduce an ad-supported VOD plan, but he didn’t rule it out at some point in the future.“It’s not like we have religion against advertising, to be clear,” said Neumann, speaking Tuesday at Morgan Stanley’s 2022 Technology, Media & Telecom Conference. “But that’s not something that’s in our plans right now… We have a really nice scalable subscription model, and again, never say never, but it’s not in our plan.” During the session, Neumann was asked about Netflix’s thinking about a cheaper, ad-based tier after Disney announced plans to rollout an AVOD plan for Disney Plus starting late in 2022 in the U.S. “It’s hard for us to kind of ignore that others are doing it, but it now doesn’t make sense for us,” the CFO said.

About Disney Plus with ads, he added with a chuckle, “I don’t think I’ll get it.”Several of Netflix’s biggest rivals offer ad-supported plans, including Hulu, HBO Max and Paramount Plus.

Neumann said some other services “are going low-price, but I think they’re also losing a lot of money.” Netflix is focused on building a profitable business that in terms of free cash flow was breakeven last year and is projected to be free cash flow positive this year, he said.More than 90% of Netflix’s subscriber growth in 2021 came from outside the U.S.