MNTN CEO Talks Top Gun Box Office Earnings and Streaming With Bloomberg

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Mark Douglas, CEO of MNTN, recently spoke with Paul Sweeney and Matt Miller on Bloomberg’s The Tape. The discussion covered everything from streaming stock outlooks to running a B2B advertising business in the current economic climate.

When asked about whether consumers care whether they have to watch ads to stream TV content, Douglas explained, “I think viewers have demonstrated that they are willing to exchange viewing of ads for a lower price. If you look at Hulu as an example, it only costs two dollars to avoid advertising on Hulu, and the number of people who select that option is actually less than half of the consumers. I think it’s as low as about 25%.”

Douglas was also asked about how the recent stock drops will affect the streaming business going forward. “At this point, especially in the in the U.S, every service that you’re going to have available to you is essentially out there, Disney+, Peacock, Netflix, they are all out there. And I think there’s a bit of uncertainty to see where consumers wind up in terms of what are the services in their core diet of viewing, so that uncertainty is affecting stocks,” said Douglas.

And as far as Netflix stock specifically, which recently saw a 67% drop Douglas attributes some of their problems to market saturation, “[They have] in some ways, a good problem to have but obviously when it comes to stock prices, no problem is great. They have so many consumers, I think over 70% market share, that it’s just hard for them to grow their business in the U.S. And I think the stock has been penalized, probably more than it should be for that kind of a problem, which is everyone is already using their services.”

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