Netflix Co-CEO Floats Free Ad-Supported Tier for Select Markets
NFLX is trading near its 52-week low of $70.86 (4.2% below the low).
Summary
Netflix Co-CEO Greg Peters said a free, ad-supported offering could make sense in some markets, signaling a potential new tier to capture price-sensitive users. The company is also testing free trials for non-rejoining new members in some countries. This follows explosive growth in the ad tier, which hit 250M monthly active users in May, and comes as the stock trades near its 52-week low after a Q2 revenue miss. A free tier would intensify competition with YouTube and ad-supported rivals, but could accelerate user growth and ad inventory. No timeline or market specifics were provided.
At the time of this announcement, NFLX was trading at $67.86 on NASDAQ in the Technology sector, with a market capitalization of approximately $313.1B. The 52-week trading range was $70.86 to $127.75. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.