MNTN CEO on Netflix Earnings Call With Bloomberg

1 Min Read

Mark Douglas, CEO of MNTN, joined Bloomberg’s ’The Tape’ with Paul Sweeney and Matt Miller to break down the recent Netflix earnings call. The streaming giant has been going through a big pivot—focusing more on their ad-supported tier and cracking down on password sharing. 

When asked about Netflix’s decision to transition from focusing on subscriber growth to a new focus of driving profitability, Douglas had two big takeaways, starting with the concern that their new ad business would cannibalize their subscription business, “…if they lost like 20% of their subscribers who said, well we’re going to go for the ad-supported option but they didn’t have the revenue yet to fill in that gap, that would be a huge problem for Netflix. That didn’t happen, the exact opposite happened.”

Douglas also called out the huge opportunity that Netflix’s new ad business has presented, “And on top of that they announced…that they’re actually making more revenue per subscriber on the ad-supported business than they are on the subscription business. So that’s just a massive opportunity that has the potential to literally double the size of the company.”

To listen to the rest of the conversation, check out the link below.