Netflix CFO Spencer Neumann Addresses Russia Pullout, Subscriber Outlook, Says “Never Say Never” To Adding Advertising

deadline.com:

Netflix CFO Spencer Neumann addressed the decision to pull out of Russia and pushed back ever-so-slightly less firmly than the notion of advertising being introduced to the service.“Never say never,” the executive said about the notion of a cheaper, ad-supported tier, “but it’s not in our plans right now.” Historically, executives have responded with a higher level of intensity to the idea that Netflix will need to have an advertising layer in order to keep adding subscribers.Neumann’s comments came during an appearance at Morgan Stanley’s Technology, Media & Telecom Conference in San Francisco.

The annual event is being held in person after two years of virtual footing due to Covid.Taking advantage of being in front of an actual crowd, Neumann took a beat before answering moderator and Morgan Stanley media analyst Ben Swinburne, who referenced Disney’s move to add ads to Disney+. “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,” he joked. “It’s not like we have religion against advertising, to be clear,” he continued, on a sincere note.

In building the company’s revenue, he added, “we lean into consumer experience, consumer choice, and what’s great for our creators and storytellers.” Down the line an advertising element could confirm with those objectives, but “that’s not something that’s in our plans right now.

We have a great model in the subscription business, it scales globally.”As to Russia, where the company made the decisions, first to pause production and eventually to suspend service there entirely, Neumann described the territory as untenable at the moment.