Say this much for Netflix NFLX 5.03%▲—when they pivot, they don’t waste time.
Barely two months after the streaming giant first signaled its interest in launching an advertising supported tier of service, Netflix is moving fast. The Wall Street Journal reported earlier this week that the company has been talking with potential partners, with the front-runners being online ad titan Google and Comcast’s NBCUniversal. Netflix co-Chief Executive Officer Ted Sarandos confirmed these talks Thursday during an appearance at the Cannes Lions conference, one of the ad industry’s largest annual gatherings.
Partnering with established advertising players would ease Netflix’s entry into a business it has long avoided. It is also the least expensive way in, especially compared with the build-it or buy-it options companies commonly use to move into new fields. Building up the necessary advertising expertise and staffing in-house would take time and require Netflix to do expensive recruiting from established media rivals that have their own streaming platforms to manage. It would also come when morale at Netflix isn’t the greatest; the company confirmed Thursday its second round of layoffs in as many months, this one around 300 people.
www.wsj.com/articles/netflix-in-a-race-against-time-with-advertising-11656068580