Netflix Is Turning Their Problems into Opportunities, Says MNTN CEO Mark Douglas

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Mark Douglas, CEO of MNTN, recently joined CNBC’s The Exchange with Wedbush Securities’ Michael Pachter to discuss Netflix ahead of that afternoon’s earnings announcement.

It’s been a tough year for Netflix, but with the recent announcement of an ad-supported tier that will be available as soon as November of this year, analysts are expecting subscriber growth to grow by around 1.1M in Q3 of this year, and 4.1M for Q4.

Whether this ad-supported tier will help offset some of Netflix’s recent issues depends on a few factors, according to Pachter, “They need to clarify that the ad-supported tier is going to generate as much revenue as the subscription tier does. So essentially that means that ads will generate something like $8-9 dollars a month per subscriber.”

In response, Douglas points out that Netflix’s problems are the kind that every other streaming service would love to have. “They have a hundred million people using the service and not paying for it—huge opportunity. They have all these people watching, over a quarter billion people watching that now they can bring ads into. So I think it’s almost not about subscriber growth. It’s seeing them monetize these things that were treated as problems earlier this year and now everyone’s realizing are big opportunities.”

For the rest of the discussion, check out the link below.