Video streaming giant Netflix, Inc. (NASDAQ: NFLX) is interviewing candidates to lead its upcoming ad-supported tier of services, according to a report by Wall Street Journal.
Shares of the streaming giant plummeted 5.2% to close at $177.50 in yesterday’s extended trading session.
Who Is Being Interviewed?
Netflix is interviewing candidates who have had a stellar reputation in the advertising space at top companies.
Some of the candidates who have been interviewed include Pooja Midha, the Chief Growth Officer of Comcast’s (CMCSA) advertising unit, and Peter Naylor, the Vice President of Sales for the Americas region at Snap (SNAP) and an ex-Hulu executive.
Netfix’s Upcoming Ad-Supported Version to Support Revenues
Jolted by its first-ever subscriber loss in more than a decade, Netflix has been mulling shoring up its revenues amid intense competition in the streaming space.
To that end, in April, the company revealed that it was exploring offering an ad-supported version of the platform to increase its subscriber base. The new version will be relatively lower-priced than the other versions.
Notably, to develop this ad-supported version, the company has held discussions with potential partners like Comcast and Alphabet. Further, the company remains open to sharing advertising revenue with a partner that helps it enter the ad business.
A Netflix spokeswoman did not divulge much about the issue and said, “We are still in the early days of deciding how to launch a lower priced, ad supported option and no decisions have been made.”
Wall Street’s Take
Consensus among analysts is a Hold based on 10 Buys, 25 Holds, and six Sells. The NFLX average price target of $268.59 implies upside potential of 51.5% from current levels. Shares have declined 67% over the past year.
Investors Are Lapping Up NFLX Stock
The TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on NFLX. Further, 24.6% of the top portfolios tracked by TipRanks, increased their exposure to NFLX stock over the past 30 days.
Key Takeaways
Netflix is looking for an experienced hand to successfully run the new ad-supported version of its popular app with the twin aims of increasing its subscriber base and revenues, with a keen focus on the former after its massive subscriber loss.
Read full Disclosure
