Ads could be 10% of revenue, or $3 billion, over time, CFO Spencer Neumann says. He estimates that about half of Hulu’s subscribers are on an ad-supported tier and that advertising is a multi-billion dollar business for Hulu. He noted Hulu operates only in the U.S., while Netflix is selling ads in multiple markets.
A senior Netflix Inc executive said on Tuesday the company had no current plans to offer a streaming option that included advertising but declined to rule it out in the future. “Never say never,” CFO Spencer Neumann said when asked if the company would change its long-standing position that its service should remain ad-free, adding “it’s not something in our plan right now.”
Netflix has been sued again for poaching executives, this time by Activision Blizzard, over its hire of CFO Spencer Neumann. In the lawsuit filed on Friday, Activision accuses Netflix of hiring Neumann as its CFO when he was less than two years into his contract. Neumann was hired as CFO by Netflix in January 2019.
Netflix’s new chief financial officer will receive $10 million in total compensation, a more generous pay package than was afforded his predecessor, according to a new regulatory filing. Spencer Neumann will earn $5 million in salary and receive $5 million in stock options.