Netflix Executive Says “Never Say Never” on Adding Cheaper, Ad-Supported Option

Streaming has changed the way we all consume entertainment. At the root of it all is Netflix, the first major provider to essentially birth the idea of a streaming platform over a decade ago. Now the model keeps changing, and prices keep rising. You have places like Peacock—and soon enough, Disney+—that offer a free or more affordable ad-supported option. That means they can then charge a premium for the ad-free version. While Netflix has always remained ad-free, one executive with the streamer says the company isn’t ruling out the possibility of introducing ads at one point or another.

Netflix CFO Spencer Neumann addressed a crowd at Morgan Stanley’s Technology, Media, and Telecom Conference in San Francisco on Tuesday. There, he said the company would “never say never” despite advertising not being in the company’s plans at the moment.

“I would love to get a show of hands of people who liked that decision by Disney, but I don’t think I’ll get it,” Neumann added. “It’s not like we have religion against advertising, to be clear. We lean into consumer experience, consumer choice, and what’s great for our creators and storytellers. [Advertising is] not something that’s in our plans right now. We have a great model in the subscription business, it scales globally.”

Disney CFO Christine McCarthy spoke at the same conference on Monday, and said many advertisers reached out about advertising on the platform.

“Expanding access to Disney+ to a broader audience at a lower price point is a win for everyone – consumers, advertisers, and our storytellers,” added Kareem Daniel, Chairman, Disney Media and Entertainment Distribution. “More consumers will be able to access our amazing content. Advertisers will be able to reach a wider audience, and our storytellers will be able to share their incredible work with more fans and families.”

“Since its launch, advertisers have been clamoring for the opportunity to be part of Disney+ and not just because there’s a growing demand for more streaming inventory,” said Rita Ferro, President, Advertising, Disney Media and Entertainment Distribution. “Disney+ with advertising will offer marketers the most premium environment in streaming with our most beloved brands, Disney, Pixar, Star Wars, Marvel and National Geographic. I can’t wait to share more with advertisers at the Upfront.”