Netflix hired two executives from social media business Snap Inc to assist the streaming giant
Netflix Inc. made the announcement on Tuesday that it has hired two executives from the social media company Snap Inc. to assist the streaming giant with the development of its upcoming tier that will be financed by advertisements. Jeremi Gorman, Snap’s Chief Business Officer, and Peter Naylor, Vice President of Ad Sales for the Americas, have both resigned from their positions at the company. Snap’s Chief Business Officer, Jeremi Gorman, and Vice President of Ad Sales for the Americas, Peter Naylor, have both left the company. Gorman has been with Snap since 2018, and he is in charge of the worldwide sales team that is responsible for enterprise advertisers. Naylor joined the company two years ago, after having assisted Hulu in expanding its robust ad-based subscription tiers. Gorman is in charge of the worldwide sales team that is responsible for enterprise advertisers.
Following the publication of its first quarterly membership decline in more than a decade, Netflix revealed that it intends to launch an ad-supported tier of its service sometime in the first quarter of this year. Due to a rise in the amount of competition from other companies as well as the widespread practice of account sharing among its potential customers, Netflix’s revenue growth has slowed significantly. Netflix has 220.67 million global members as of the end of the second quarter, which represents a loss of approximately 1 million consumers.
The new advertising tier will aim to reverse this trend by providing users with a lower-priced streaming option. According to sources, the package would cost between $7-9 per month. This will be done in order to attract more subscribers. Six weeks have passed since Netflix disclosed that Microsoft would serve as its partner in the areas of technology and advertising sales after the announcement of Naylor and Gorman’s appointments. Netflix shares are down 63.4% year to date, compared to a 33.1% decrease in the Zacks Consumer Discretionary sector.